Partnership Statement of Financial Position Format
The Partnership Statement of Financial Position shows a partnership's assets, liabilities and owners' equity on a particular date. It is prepared at the end of the accounting period after the Profit and Loss Account and the Profit and Loss Appropriation Account. Its distinctive feature is that the equity section shows each partner's capital and current account separately.
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Blank format
| Particulars | RM | RM | RM |
|---|---|---|---|
| Non-current Assets | |||
| xx | XX | XX | XX |
| xx | XX | XX | XX |
| Total Non-current Assets | XX | ||
| Current Assets | |||
| xx | XX | ||
| xx | XX | ||
| Total Current Assets | XX | ||
| Total Assets | XX | ||
| Owners' Equity | |||
| Capital: xx | XX | ||
| Capital: xx | XX | ||
| Total Capital | XX | ||
| Current Account: xx | XX | ||
| Current Account: xx | XX | ||
| Total Current Accounts | XX | ||
| Total Owners' Equity | XX | ||
| Non-current Liabilities | |||
| xx | XX | ||
| Current Liabilities | |||
| xx | XX | ||
| xx | XX | ||
| Total Current Liabilities | XX | ||
| Total Equity and Liabilities | XX |
Begin with the three-line heading: the partnership's name, 'Statement of Financial Position', and 'as at [date]'. Non-current assets use three columns (Cost, Accumulated Depreciation, Net Book Value); indent the particulars and place subtotals and grand totals in the right-most column so that Total Assets aligns with Total Equity and Liabilities.
Parts of the format
- Three-line heading
- First line the partnership's name, second 'Statement of Financial Position', third 'as at' followed by the date, because the statement shows the position on a single date, not over a period.
- Assets section
- Non-current assets are recorded at cost, less accumulated depreciation to give the net book value; current assets are listed in order of liquidity (inventory, receivables, bank, cash).
- Partners' capital
- Each partner's fixed capital is shown separately and totalled; under the fixed capital method the capital balance normally stays unchanged.
- Partners' current accounts
- Each partner's current account balance (share of profit, interest and salary less drawings) is added to capital; a debit balance is deducted because drawings exceed the entitlement.
- Liabilities
- Non-current liabilities such as a long-term bank loan are separated from current liabilities such as payables and accrued expenses.
- Balancing the statement
- Total assets must equal total owners' equity plus total liabilities, following the accounting equation.
Filled example
Aiman and Balan are partners in Sinar Jaya Partnership, a furniture business. As at 31 December 2024: premises RM150,000; equipment costing RM40,000 (accumulated depreciation RM8,000); motor vehicle costing RM60,000 (accumulated depreciation RM15,000); inventory RM18,000; trade receivables RM12,000; bank RM8,000; cash RM2,000; fixed capital Aiman RM100,000 and Balan RM80,000; current account balances Aiman RM15,000 and Balan RM12,000; bank loan RM40,000; trade payables RM15,000; accrued expenses RM5,000.
| Particulars | RM | RM | RM |
|---|---|---|---|
| Non-current Assets | |||
| Premises | 150,000 | 150,000 | |
| Equipment | 40,000 | 8,000 | 32,000 |
| Motor Vehicle | 60,000 | 15,000 | 45,000 |
| Total Non-current Assets | 250,000 | 23,000 | 227,000 |
| Current Assets | |||
| Inventory | 18,000 | ||
| Trade Receivables | 12,000 | ||
| Bank | 8,000 | ||
| Cash | 2,000 | ||
| Total Current Assets | 40,000 | ||
| Total Assets | 267,000 | ||
| Owners' Equity | |||
| Capital: Aiman | 100,000 | ||
| Capital: Balan | 80,000 | ||
| Total Capital | 180,000 | ||
| Current Account: Aiman | 15,000 | ||
| Current Account: Balan | 12,000 | ||
| Total Current Accounts | 27,000 | ||
| Total Owners' Equity | 207,000 | ||
| Non-current Liabilities | |||
| Bank Loan | 40,000 | ||
| Current Liabilities | |||
| Trade Payables | 15,000 | ||
| Accrued Expenses | 5,000 | ||
| Total Current Liabilities | 20,000 | ||
| Total Equity and Liabilities | 267,000 |
Columns show Cost, Accumulated Depreciation and Net Book Value for non-current assets; subtotals and grand totals sit in the right column.
Common layout errors
Related chapters and procedures
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