Difference between Partnership Accounts and Sloe Trader Accounts
Partnership accounts are identical in many respects to the accounts of sole traders.
- The assets of a partnership are like the assets of any other business, and are accounted for in the same way. The assets side of a partnership balance sheet is no different from what has been shown in earlier posts.
- The net profit of a partnership is calculated in the same way as the net profit of a sole trader. The only minor difference is that if a partner makes a loan to the business as distinct from capital contribution then interest on the loan will be an expense in the profit and loss account, in the same way as interest on any other loan from a person or organization who is not a partner.