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Post Info TOPIC: Partnership Accounts
QBE Book-Keeping


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Partnership Accounts
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I cant quite get my head around a new Partnership account I am working on. Just can't seem to get the Balance Sheet to balance!

 

Capital introduced equally is £ 20,000 each, with an additional £ 5,815 introduced during the year.

They have spent £ 19,938 on assets, (depreciation £4,763), two bank accounts at 819 and 21, Liabilities of £ 14,695.

During the year they drew £ 14,100, and made a loss of £ 11,847.

 

Help required please



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Rob Wilde
Shamus


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Hi Rob,

Just to confirm my understanding.

you've got tangible assets of £15,175 (19938-4763 depreciation)

Current assets of 840 (819 + 21)

Giving a total assets of £16,015

Owners Capital is £51,715 ((£20k*3)+£5,815-£14,100)

Retained earnings (Negative £11847 (inclusive of the depreciation charge to P&L for the year???))

Liabilities of £14,695.

As you say, that's really not balancing at all.

Also just to confirm. This is the partnerships first year of trading so there is nothing brought forwards in the retained earnings that's been missed?

Any other info to work with (without giving away too much about the client online of course) would be greatly appreciated as there's got to be something missing from this.




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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
QBE Book-Keeping


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Thanks Shamus for replying.

I'm glad it's thrown you too.

Owners Capital would be £40,000 as it is a Partnership. So that would work out at £ 31,715.

And nothing to be brought forward, no.

 



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Rob Wilde
Shamus


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OMG. where did I read three partners from? I'm losing the plot!!!

I've played around with different connertations of the figures but without access to the actual books all that I'm coming up with is guess work and even that isn't coming back with a balance sheet that does.

My suggestion would be to go back to the P&L and recheck all of the figures there espechially in relation to the depreciation charge and partners drawings (which I'm sure that you have already done a dozen times over).

In Information Technology there's a phrase called code blind where you look at something for so long that you see what you think is there rather than what is actually there.

Might be worth taking a ten minute break, having a coffee then trying to look at this in a semi refreshed state.

Keep us informed if you come up with anymore info as something has to be either missing or doubled up here.





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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
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