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Partnership Accounts

Hi, Could someone please advise on creating partnership accounts?

I have created Owners Equity


Posted by Ovel on Sep 5, 2015 10:35 AM BST

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,


Posted by Mark McLaren (Solar Accounts) on Sep 7, 2015 2:49 AM BST