Hi, Could someone please advise on creating partnership accounts?
I have created Owners Equity
Hi Ovel,
Yes it's normal to have 2 separate equity accounts for each partner like this:
Owners Capital - Partner 1
Owners Drawings and Personal Use - Partner 1
Owners Capital - Partner 2
Owners Drawings and Personal Use - Partner 2
...etc.
I don't think you need three capital accounts - the 'current account' and 'drawings' can be amalgamated. However, please check this approach with your accountant as he/she may prefer a different method.
Regards,