CXC CSEC Principles of Accounts (POA) exam guide: Section 9: Accounting for Partnerships

CXC CSEC Principles of Accounts Exam guide: Section 9: ACCOUNTING FOR PARTNERSHIPS

CXC CSEC Principles of Accounts Exam Guide



The students should be able to:

1. Define a partnership business;

Definition of partnership;

Comparison of a partnership with



types of partners.

2. State the features of a partnership;

Features of partnership –

voluntary association,

mutual agency,

unlimited liability.

3. Give reasons for establishing partnerships;

Reasons for formation of partnership, for example,

increased capital,

diverse skills.

4. Outline the essential components of a partnership agreement;

Features of partnership agreement, including

share profits,

interest on capital and drawings,



Prepare journal entries and ledger accounts to record the capital of partnerships;

The capital account of partners –

cash and non-cash resources;

types of capital account – fixed and fluctuation capital accounts and their implications.

6. Use various methods to share profit/loss among partners;

Methods of sharing profit/loss:

capital ratio;

fixed percentage,


7. Prepare appropriation account of partnerships;

The preparation of the appropriation account.

8. Prepare current account of partners;

The current account prepared with items from the appropriation account; columnar form and single accounts.

9. Explain the significance of the brought down balances on partners’ current accounts;

The significance of the debit and credit balances brought down on the current accounts.

10. Prepare balance sheet of partnerships;

The treatment of current account balances on the balance sheet; (emphasis on capital section).

11. Analyze performance and position using ratios.

The calculation and interpretation of accounting ratios.


Angelkam (not verified) 10 May 2011 - 12:51pm

This is very help it helped in studying for my exams.
Thanks a lot!!!

tammecka nelson (not verified) 31 October 2011 - 11:42pm

to be successful in life and what i want to be,by hard work and responsiability of my own.

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