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Regarding partnership accounts

Accounting Entries 298 views 1 replies

Hello Everyone, 

In Partnership accounting the Partnership Deed Consists of 3 Partners X,Y&Z in which X is a sleeping partner who invested 42 % of total capital and rest equally by other partners,but the deed specify the profits should be shared equally by Partner Y & Z (i.e no profit for sleeping partner),Please guide which are all accounts to be prepared  

1.X,Y & Z capital account                                                                                                                                                      2.Y & Z current account

Query : Is it required to prepare current account of Sleeping partner (X) ?

 

Replies (1)

There is no need to prepare current account of partner x. Sice, there is no current account transaction b/w firm and Partner X.


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