Question

When is current account prepared in partnership firm?

Answer 1

Answer:

Explanation:

Partners current account is prepared when you have a Fixed Capital system. In this system, the initial contribution as outlined by the partnership deed or the admission deed is kept in the Capital Account. Any permanent addition or deletion of Capital is also given effect to in the Capital Account.

Current Account is used to give effect to profits and losses, drawings, remuneration and interest amounts payable to partners etc.

Answer 2

Answer:

Explanation:

Partners current account is prepared when you have a Fixed Capital system. In this system, the initial contribution as outlined by the partnership deed or the admission deed is kept in the Capital Account. Any permanent addition or deletion of Capital is also given effect to in the Capital Account.

Current Account is used to give effect to profits and losses, drawings, remuneration and interest amounts payable to partners etc.