How is depreciation treated in the final accounts of a partnership?

How is depreciation treated in the final accounts of a partnership?

Step 1: Understand what depreciation is. It is the reduction in value of an asset over time.
Step 2: Know that partnerships have financial statements, including a profit and loss account.
Step 3: Recognize that depreciation is recorded as an expense in the profit and loss account.
Step 4: Understand that recording depreciation as an expense reduces the total profit of the partnership.
Step 5: Remember that this reduction in profit affects how much profit is shared among partners.

Depreciation Treatment – Depreciation is recorded as an expense in the profit and loss account, which decreases the net profit of the partnership.