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PartnershipAccount
BalanceSheet
Welcometoourpresentationonpartnershipaccountbalancesheets.Today,
we'llbeexploringthedifferentcomponentsandhowtopreparethem.Let's
getstarted!
byRajeshChakraborty
WhatisaBalanceSheetand
WhyisitImportant?
1 Definition
Abalancesheetisafinancial
statementthatshowsthe
assets,liabilities,andequity
ofacompanyataspecific
pointintime.
2 Importance
Itprovidesinsightsintoa
company'sfinancialhealth
andhelpsindecisionmaking.
Italsoformsthefoundation
forotherfinancialstatements.
ComponentsofaPartnershipBalance
Sheet
Assets
Currentassets
Long-terminvestments
Property,plantand
equipment
Intangibleassets
Liabilities
Currentliabilities
Long-termliabilities
Deferredtaxes
Equity
Contributedcapital
Retainedearnings
Accumulatedother
comprehensiveincome
Assets
Cashandcash
equivalents
Thiscategoryincludesanyliquid
assetsthatcanbeusedto
generatecash,suchaschecking
accountsandmarketable
securities.
Property,plantand
equipment
PP&Ereferstotangibleassetslike
officebuildings,equipment,and
vehicles.Itdoesnotinclude
intangibleassets.
Intangibleassets
Thiscategoryincludesitemssuch
aspatents,trademarks,
copyrights,andgoodwill.
Liabilities
Currentliabilities
Thesearedebtsthatmust
bepaidwithinoneyear,such
asaccountspayable,short-
termloans,orwages
payable.
Long-termliabilities
Theseareobligationsthat
willnotbeduewithinthe
nextyear,suchasbonds,
mortgages,ordeferred
taxes.
Deferredtaxes
Thiscategoryincludestaxes
thathavenotyetbeenpaid,
butwillbedueinthefuture,
suchasincomeorproperty
taxes.
Equity
1 Contributedcapital
Thisistheinitialinvestmentmadebythepartnersinthebusiness.Itincludescash,
property,andotherassetscontributedbyeachpartner.
2 Retainedearnings
Thiscategoryincludesanyprofitsearnedbythebusinessthatwerenotdistributedas
dividends.
3 Accumulatedothercomprehensiveincome
Thiscategoryincludesanygainsorlossesthatarenotincludedinnetincome,suchas
foreigncurrencytranslationadjustmentsorchangesinthevalueofpensions.
HowtoPrepareaPartnership
BalanceSheet
Startbylistingalltheassetsthepartnershipownsandthevalueofeach
ofthem.
1.
Listallliabilities,includingshort-termandlong-termdebts.
2.
Totaltheassetsandtheliabilitiesandsubtractthelatterfromtheformer
togettheequityofthepartnership.
3.
ExampleofaPartnershipBalanceSheet
Here'sanexampleofwhatapartnershipbalancesheetmightlooklike:
Assets
Cashandcashequivalents $50,000
AccountsReceivable $25,000
OfficeEquipment $100,000
TotalAssets $175,000
Liabilities
AccountsPayable $10,000
Short-termLoans $20,000
Long-termLoans $60,000
TotalLiabilities $90,000
Equity
ContributedCapital $100,000
RetainedEarnings $5,000
TotalEquity $85,000
TotalLiabilitiesandEquity $175,000
ConclusionandQ&ASession
Abalancesheetisanimportantfinancial
statementusedtosummarizeacompany's
financialpositionataspecificpointintime.
Ifyouhaveanyquestions,pleasedon'thesitateto
ask.Thankyouforjoiningustoday!

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Partnership-Account-Balance-Sheet.pdf