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    Farousi's Avatar
    Farousi Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 13, 2009, 01:51 AM
    How to record partners'current acounts in the trial balance and balance sheet
    Two persons started their own business with the amount of dhs 175000 paid by one of them who doesn't work in the company . And the other one work in the company as a general manger .Considering the money as a loan to be paid back to the partner within 18 months, when their first financial statement will issue . The company will be owned by both of them 50%.

    After 15 months the company made good profit and as agreed the loan paid back to the partner dhs 175000.

    How can I record the loan and what should I put in partners' current account and capital account in trial balance and balance sheet?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    May 31, 2009, 04:46 AM

    If after the loan is repaid,
    The balance is the net profit left over.
    This should be divided by two.
    Every partner will then get his share.
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