Question 1 Introduction
A credit balance on a partner's current account means that the partner has drawn out more than his or her share of the profits.
Normally, partnerships consist of between two and twenty partners.
A partnership can draw up its own partnership agreement which it can follow rather than the accounting rules set out in the Partnership Act 1890.
A partnership appropriation account is the section of the income statement that shows how the profit for the year is shared amongst the partners.
Each partner usually has a capital account and a profit account in the books of the partnership.
A credit balance on a partner's current account means that the partner has drawn out more than his or her share of the profits.
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