Which of the following aspect need accounting treatment in a partnership business but not in sole proprietorship?

Maintenance of partner's capital A/c

The correct answer is option 3- Maintenance of partner's capital A/c.

There is not much difference in the final accounts of a sole proprietary concern and that of a partnership firm except that in case of a partnership firm an additional account called Profit and Loss Appropriation Account is prepared to show distribution of profit and loss among the partners. Accounting treatment for partnership firm is similar to that of a sole proprietorship business with the exception of the following aspects:

• Maintenance of Partners’ Capital Accounts
• Distribution of Profit and Loss among the partners
• Adjustments for Wrong Appropriation of Profits in the Past
• Reconstitution of the Partnership Firm
• Dissolution of Partnership Firm.

* Trading and Profit & loss A/c, and balance sheet are made by both partnership & sole proprietorship.