Partnership Current Accounts Walkthrough with T Accounts ( AAT level 3 ) - AAT financial statements

In todays video I walk you through two separate examples of a partners current account in the form of T accounts to help with your understanding.

If you are currently studying towards an AAT qualification, ACCA, ACA, CIMA, CPA or other accountancy qualification then this video might be useful towards your understanding. Here I break down two examples which include:

-Profit share
-Balance brought forward from prior financial statements
-Salary
-Drawings
-Interest on drawings
-Balance carried down in this financial year

Let me know if you found this video useful and give it a huge thumbs up if it was helpful :)

[richardbalogh]

Thank you for the video. The balance b/d could be debit balance too right ?

[Nathan-vntg]

Could you make more videos like these. You can’t even imagine how helpful they are. Thank you.

[SalmanKhan-opwu]

Mann I finally understand what’s happening in current accounts now thankssss

[DenimCharlesworth]

This was really really helpful thank you

[spennysimmo]

Thank you for this video. Can I check something with you as I am studying partnership appropriation right now. I am learning that the partner percentage profit share is based on the net profit "after" the profit has been adjusted for salaries and interest. In your examples you are apportioning the net profit with the profit sharing ratio before these adjustments? So profit £99, 000 less salaries of £18, 000 plus interest on drawings of £1, 000 = £82, 000 and then credit that as the profit share 70/30?

[S-vrou]

Hi Rebecca,
If you started with a net loss and profit share appropriation was a loss would this still credit the partner current account?

[samueltaylor]

Hi, thanks for the video really helpful - may be a stupid question, but why are the drawings a debit, I can never quite get my head around, why drawings are a debit, I always thought that money withdrawn through drawings would also end up in the individuals current account ? Could you explain why it doesn't pleased :)

[adnanshahid]

Hey
Kindly reply to my query
I'm an acca finalist and after completion i want to get exemptions in icaew and directly join the firm for articleship in UK. Also I don't live in uk so Can I apply for articleship through paksitan and they arrange my visa or I've to arrange it myself and have to come there to apply.
Thankyou

[justingeorge]

Are you not meant to do all deductions, i.e Salary and Interest on Drawings before splitting the profit? That would bring you down from your Gross Profit to Net Profit.