AC102 PPT4 - Accounting for Partnership (PPT from Sir Leandro Fua)

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AC102 PPT4 - Accounting for Partnership (PPT from Sir Leandro Fua)

  1. 1. MIRIAM COLLEGE College of Business, Entrepreneurship and AccountancyCollege of Business, Entrepreneurship and Accountancy Business Administration Department BSA – 102 Principles of Accounting Part 2 2nd Semester, SY 2012-2013
  2. 2. ACCOUNTING FOR PARTNERSHIPS College of Business, Entrepreneurship and Accountancy• PLURALITY OF CAPITAL AND DRAWING ACCOUNTS.• Accounting for a partnership differs from other forms of business organizations with regard to capital accounts.• In a partnership, there should be as many capital accounts and as many drawing accounts as there are partners (that is, one capital account and one drawing account is maintained for each partner).
  3. 3. College of Business, Entrepreneurship and Accountancy CAPITAL ACCOUNT1. Permanent withdrawal 1. Original investment by a (decrease) of capital partner2. Share in partnership loss 2. Additional investment by from operations a partner 3. Share in partnership3. Debit balance of drawing profits from operations to account closed to capital be added to capital

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