In partnership accounts why is interest allowed on capital

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Reference no: EM131386064

(i) the profit and loss appropriation account of Penrose and Wilcox;

(ii) the current accounts in the ledger for Penrose and Wilcox.

(b) Why in many partnerships are current accounts prepared as well as capital accounts?

(d) In partnership accounts what is the purpose of preparing:

(i) a statement of profit or loss?

(ii) a profit and loss appropriation account?

(e) In partnership accounts why is:

(i) interest allowed on capital?

(ii) interest charged on drawings?

Reference no: EM131386064

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