Accounting (AS)·Partnerships · NSSCAS 2.2.1
The appropriation account
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A partnership's income statement calculates the profit — but who gets it? The appropriation account shares that profit fairly using interest on capital, partners' salaries and interest on drawings. This statement is a Paper 1 favourite: learn the exact vertical format and the marks are yours, even in a year when the sharing turns into a loss.
What you'll learn in this lesson
By the end you should be able to (NSSCAS Accounting (AS) 2.2.1):
- explain the importance of appropriation
- prepare an appropriation account to show the treatment of: interest on drawings, interest on capital, partners' salaries, remaining profit or loss
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Miss Olivia and Mike talk through the whole topic — with the figure and working drawn live.