Partnership Accounting

These projects will be done in Connect.  

Refer to your class schedule for the due date for this project. 

NOTE: These projects will not require all of your class time. This was done on purpose to allow you time to work on the Perdisco project and ask me questions.

Previously, we have looked at a service company for a sole proprietor, a retail corporation and now we will learn how to account for partnership transactions.  

Here are your resources:

Partnership Basics

Partnership Formation and Income Allocation

Admission and Withdrawal of Partners

NOTE: When partners leave a partnership, allocations must take this into consideration. For example if three partners divide income by 5:3:2, if the partner associated with the 2/10ths leaves, then the partnership ratios become 5:3–one partner gets 5/8ths and the other 3/8ths.

Partnership Liquidations

Here are videos prepared by me:

Partnership Formation and Income Allocation

 Partnership Admission and Withdrawal

Partnership Liqudations

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