Audit of Sole Proprietorship and Partnership Accounts

Difficulty in determining profit-sharing provisions

Difficulty in segregating personal and business transactions (correct)

Difficulty in tracing initial capital investment

Difficulty in obtaining written partnership agreements

Written partnership agreement

Method used in dividing the year's earnings

Distribution of net income

Additions to cash asset records (correct)

Verifying personal expenditures paid with company funds

Obtaining written partnership agreements

Ensuring distribution of net income according to profit-sharing provisions (correct)

Segregating personal and business transactions

<p>Obtain written statements confirming the balance in each partner's capital account</p> Signup and view all the answers

<p>Transferring from expense accounts to owner's drawing account any personal expenditures paid with company funds</p> Signup and view all the answers