Accounting Igcse Cie
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Ledgers Igcse Cie
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Recording-Other-Transactions Igcse Cie
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Balancing-Accounts Igcse Cie
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The-Double-Entry-System Igcse Cie
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The-Cash-And-Petty-Cash-Books Igcse Cie2 主题
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The-Trial-Balance-And-Correction-Of-Errors Igcse Cie4 主题
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Bank-Reconciliation Igcse Cie2 主题
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Control-Accounts Igcse Cie3 主题
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Capital-And-Revenue-Expenditure-And-Receipts Igcse Cie2 主题
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Other-Payables-And-Other-Receivables Igcse Cie2 主题
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Irrecoverable-Debts-And-Provision-For-Doubtful-Debts Igcse Cie2 主题
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Valuation-Of-Inventory Igcse Cie2 主题
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Financial-Statements-For-Sole-Traders Igcse Cie8 主题
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Sole-Traders Igcse Cie
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Income-Statement Igcse Cie
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Statement-Of-Financial-Position Igcse Cie
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Adjustments-For-Provision-For-Depreciation Igcse Cie
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Adjustments-For-Provisions-For-Doubtful-Debts Igcse Cie
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Adjustments-For-Accrued-And-Prepaid-Expenses Igcse Cie
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Adjustments-For-Accrued-And-Prepaid-Income Igcse Cie
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Adjustments-To-Financial-Statements Igcse Cie
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Sole-Traders Igcse Cie
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Financial-Statements-For-Partnerships Igcse Cie5 主题
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Financial-Statements-For-Clubs-And-Societies Igcse Cie5 主题
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Incomplete-Records Igcse Cie4 主题
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Accounting-Ratios Igcse Cie6 主题
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Statement-Of-Financial-Position Igcse Cie
Exam code:0452 & 0985
Statement of financial position for partnerships
What is the layout of the statement of financial position of a partnership?
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The statement of financial position of a partnership is the same as that of a sole trader with the exception of the capital section
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It first states the total assets
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Non-current assets
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Current assets
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And then the total capital and liabilities
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Capital
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Non-current liabilities
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Current liabilities
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The capital section of the statement of financial position shows the balances of each partner from their capital accounts and current accounts separately
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If the current account has a debit balance then:
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Put brackets around the balance on the statement of financial position
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Treat the number like a negative number
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Do I need to show the full details for the current accounts?
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A question might ask you to show full details of the current accounts
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Start with the opening balances for each partner
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Add the interest on capital
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Add the salaries
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Add the interest on loans
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Add the profit shares
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Less the drawings and the interest on drawings
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Calculate the closing balances for each partner
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Add together to give the combined balance for the current account
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Examiner Tips and Tricks
If the question does not ask you to provide full details then you do not need to. However, if you do not have the current accounts then it might be easier to show the full details anyway.
Worked Example
Below is the capital and current account of Adi and Bilal at 31 December 2023. Prepare an extract of the statement of financial position at 31 December 2023 showing the capital section with full details of the current accounts.
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Adi and Bilal Capital Accounts |
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Adi |
Bilal |
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Adi |
Bilal |
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Date |
Details |
$ |
$ |
Date |
Details |
£ |
£ |
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|
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2023 Jan 1 |
Bal b/d |
20 000 |
12 000 |
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Adi and Bilal Current Accounts |
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Adi |
Bilal |
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Adi |
Bilal |
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Date |
Details |
$ |
$ |
Date |
Details |
$ |
$ |
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2023 |
Drawings |
3 000 |
6 000 |
2023 |
Balance b/d |
5 000 |
1 000 |
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Dec 31 |
Interest on drawings |
300 |
600 |
Dec 31 |
Interest on capital |
1 000 |
600 |
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|
Dec 31 |
Salaries |
2 000 |
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Dec 31 |
Profit share |
6 000 |
4 000 |
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Answer
Enter the details into the layout for the statement of financial position. When we subtract the drawings and interest on drawings for Bilal we get a negative value, so we need to use brackets.
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Adi and Bilal Statement of Financial Position (extract) at 31 December 2023 |
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$ |
$ |
$ |
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Capital |
Adi |
Bilal |
Total |
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Capital accounts |
20 000 |
12 000 |
32 000 |
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Current accounts |
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Opening balance |
5 000 |
1 000 |
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Interest on capital |
1 000 |
600 |
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Partner’s salary |
2 000 |
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Profit share |
6 000 |
4 000 |
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|
14 000 |
5 600 |
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Responses