Special Aspects of Partnership Accounts

Once a partnership firm is formed, its day-to-day accounting is largely the same as for a sole proprietorship — recording purchases, sales and expenses, and preparing the Trading and Profit and Loss Account, works exactly the same way. What changes is that a partnership has more than one owner, so a handful of additional aspects need their own treatment:

• Maintenance of Partners' Capital Accounts
• Distribution of Profit and Loss among the Partners
• Adjustments for Wrong Appropriation of Profits in the Past
• Reconstitution of the Partnership Firm
• Dissolution of the Partnership Firm …