A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates. That income is paid to partners, who then claim it on their personal tax returns – the business is not taxed separately, as corporations are, on its profits or … Read the rest
HOW TO PREPARE PARTNERSHIP ACCOUNTS
Ashaiman and Nima are in partnership sharing profits and losses 2:1. They had originally invested TZS 50,000 and TZS 40,000, respectively. Their current account balances on 1 November 2016 were TZS 14,000 credit for Ashaiman and TZS 9,900 debit for Nima.
The partnership agreement specifies the following:
- The payment of interest on drawings and receipt