Explain some difference in accounting for partnership and accounting for sole trade or sole proprietor?

Major differences are:

  • The funds put into the business by each partner are shown differently
  • The net profit must be appropriated by the partners, ie. Shared out according to the partnership agreement. These appropriation s of profit must be shown in the partnership accounts.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.