The document discusses accounting for partnerships. It notes that partnerships have a plurality of capital and drawing accounts, with one capital account and one drawing account maintained for each partner. The capital account records a partner's original investment, additional investments, share of partnership profits, and permanent withdrawals from the partnership.

1. MIRIAM COLLEGE
College of Business, Entrepreneurship and Accountancy
College of Business, Entrepreneurship
and Accountancy
Business Administration Department
BSA – 102
Principles of Accounting Part 2
2nd Semester, SY 2012-2013

2. ACCOUNTING FOR PARTNERSHIPS
College of Business, Entrepreneurship and Accountancy
• PLURALITY OF CAPITAL AND DRAWING ACCOUNTS.
• Accounting for a partnership differs from other forms
of business organizations with regard to capital
accounts.
• In a partnership, there should be as many capital
accounts and as many drawing accounts as there are
partners (that is, one capital account and one drawing
account is maintained for each partner).

3. College of Business, Entrepreneurship and Accountancy
CAPITAL ACCOUNT
1. Permanent withdrawal 1. Original investment by a
(decrease) of capital partner
2. Share in partnership loss 2. Additional investment by
from operations a partner
3. Share in partnership
3. Debit balance of drawing
profits from operations to
account closed to capital
be added to capital