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1.6 Financial statements of a partnership
Partnership agreement
A Partnership Agreement is a contract between two or more individuals who would like to
manage and operate a business together in order to make a profit. Each Partner shares a
portion of the partnership's profits and losses and each Partner is personally liable for the debt
and obligations of the Partnership.
Introduction to partnership accounts
There are 3 types of accounts in Partnership:
Appropriations of profit Account
Capital Account
Current Account
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