The dissolution of a
partnership is the process during which the affairs of the partnership are
wound up (where the ongoing nature of the partnership relation terminates).
This should not be confused with the term dissolution when applied to a limited
company, which is the event that marks the conclusion of the winding-up.
Showing posts with label ACCOUNTING. Show all posts
Showing posts with label ACCOUNTING. Show all posts
6/9/17
ACCOUNTING FOR PARTNERSHIP: P&L Allocation
Accounting for Partnership: Profit or Loss Allocation
Like any
other business, a partnership conducts their operations to generate profit and
to allocate them at the end of the fiscal year. It is common and practical to
all partnership to have a profit or loss agreement. This agreement can be simple
or complex but should be equitable for the partners.
In the absence
of agreement, the share of each partners in profit or loss shall be in
proportion to their capital contribution.
6/8/17
ACCOUNTING FOR PARTNERSHIP: Formation
A partnership is an association of two or more person who contribute money, property or industry to a common fund with the the intention of dividing profits among themselves. The person can be an individual, corporation or partnership themselves.