Admission of a New Partner

Adding a partner to an existing partnership can result in either goodwill or bonus journal entries depending on which method of accounting is used. The purchase of partnership interest can be undertaken at a valuation equal to, more than, or less than book value.

Admission of a New Partner August 10th, 2017Team
Read more

Partnership Journal Entries

The partnership journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting relating to partnership accounts.

Partnership Journal Entries June 16th, 2017Team
Read more

Consignment Accounting

This tutorial deals with consignment accounting and accounting for consignment sales. A consignment is a term used to refer to an arrangement whereby goods are sent by their owner (consignor) to an agent (consignee) who holds and sells the goods on behalf of the owner for a commission. It is important to understand that the agent never owns the goods.

Consignment Accounting September 18th, 2017Team
Read more

Joint Venture Accounting

This tutorial deals with the joint venture accounting when no legal entity is formed and each business only maintains bookkeeping records for its own transactions. This type of joint venture accounting treatment, where there is no legal entity, is referred to as a joint operation or jointly controlled operation.

Joint Venture Accounting May 2nd, 2017Team
Read more

Liquidation of a Partnership

Accounting for the liquidation of a partnership involves four steps to be completed, sell non cash assets, allocate the gain or loss on sale to the partners using the income ratio, pay any partnership liabilities, and finally distribute the remaining cash to the partners using the capital ratio.

Liquidation of a Partnership November 6th, 2016Team
Read more

Distribution of Partnership Income

The distribution of partnership income is the process of sharing the net income or net loss of a partnership between the partners in proportion to the income sharing ratio.

In the absence of a partnership agreement, each partner will receive an equal share of the net income or net loss of the partnership. For a two partner firm, this would mean that the income sharing ratio could be expressed as 1:1.

Distribution of Partnership Income November 6th, 2016Team
Read more

Partnership Formation Accounting

As a business grows it may be necessary to involve additional people either to obtain access to more capital or to provide expertise. One way of introducing additional people is to form a partnership.

When a partnership is formed each partner will normally introduce capital into the partnership. The capital can either be cash or alternatively in a non-cash form such as machinery, vehicles, accounts receivables or buildings which are accounted for at fair value.

Partnership Formation Accounting November 6th, 2016Team
Read more

You May Also Like


Related pages


bank reconciliation statement preparationpayback period on excelpayroll accounting entrieswhen are closing entries madetotal overhead variance formulagoods held on consignment areaccounts receivable and allowance for doubtful accountsdisbursement journal templateprime and conversion costsunrealized loss journal entryhow do i calculate markupfinancial projections templateassets turnover ratio calculatorare credit cards assets or liabilitiesdebtor turnover days formulaexcel accounting tutorial pdfcalculation for markupjournal entry for doubtful debtsaccounting closing entriesimprest cash accountweighted average method of inventory valuationwhat is the formula for fixed costwhat is the retail inventory methodcalculate depreciation expense straight line methodexamples of adjusting journal entriesmanual bookkeeping examplescontrollable expenses definitionhow to identify debit and credit in accountingdupont analysis formulaincreasing annuity due formulaoverheads allocationhow to calculate quick ratioformula of marginal costingirr example excelhow to find acid test ratioaccounts payable a credit or debitcalculating accounts receivable daysstraight line amortization scheduleaccounting for outstanding checksaccounts receivable and accounts payable are examples of controlling accountsformula for fvmonthly payment function excellcm valuationaccounts payable control accountpaid dividends journal entryincome statement unearned revenuepto accrual formulapmt function examplewhat are ledgers in accountingcash receipt journal templateaccounting correcting entriescalculate fifoexample accounting equationreorder point excelwhat are adjusting entriescapital lease journal entries lessorgordon growth model calculatorpayback period formula excelbudgeted fixed overheadcalculating payback period in excelblank ledger templateformula for contribution marginpercentage markup formuladouble column cash book examplegross profit cogsaccounting double entry system examplewhat is a current liabilities examplesnet profit to sales ratioprepaid insurance in balance sheetdelivery term fobexample of chart of accounts in general ledgerwhat is sales ledger control accountdifficult accounting entrieshow to compute inventory turnover