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☑ Process for setting up a partnership
☑ The allocation of net income to partners
☑ The recording of partner withdrawals
☑ Recording the partnership closing process
☑ Journal entries related to a partner leaving the partnership
☑ Journal entries related to adding a new partner to the partnership
☑ The liquidation process for a partnership
☑ A comprehensive problem on the accounting cycle
☑ Key terms definitions and explanations related to partnerships
This course will only provide the video lecture presentation component of our resources, so that learners can review the video material without being distracted by other resources.
Partnership accounting will cover accounting topics related to a partnership form of business entity.
This partnership course will focus on the accounting issues that are different in a partnership as compared to other types of entities like a sole proprietorship or corporations. As we focus on the differences, we always want to keep in mind the similarities in accounting for different business entities. Most of what we have learned about the double entry accounting system and day to day accounting transactions in prior courses will remain the same. We are concentrating on the areas that will different because the differences are where the new information lies.
We will start by defining what a partnership is and comparing the characteristics of a partnership with other business entities. Understanding one business entity and its components are often best learned by contrasting them with the attributes of others, always considering the relative pros and cons, thinking of situations and circumstances that would benefit one form of business entity over another.
The course will discuss the process for setting up a new partnership, typically starting with the partners contributing capital to the partnership, requiring us to record the contribution and the capital accounts.
We will discuss the allocation of net income to the partners, one of the primary differences between a partnership type of entity and other types of entities. There is a lot of flexibility for net income allocation in a partnership, and this is one of its primary benefits.
The course will cover the recording of partnership draws, how to record them, as well as the closing process for a partnership. The steps of the closing process will be much the same as those for any business entity except for the allocation of net income to the partners.
We will consider the situation where a partner leaves a partnership or where a new partner is added. The transactions related to a partner leaving or being added is unique to a partnership entity.
The course will cover a partnership liquidation process or closing process. The liquidation process is a very useful exercise for any entity because it allows us to do take apart a business. We have discussed the process of putting new busses together in prior courses, but to fully understand how something works we must also take it apart. The liquidation process is particularly important for a partnership entity because it emphasizes the capital accounts and the process necessary to reduce the likelihood of problems during the process.
Who will we be learning from?
You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.
You will be learning from somebody who is a:
• CPA – Certified Public Accountant
• CGMA – Chartered Global Management Accountant
• Master of Science in Taxation
• CPS – Certifies Post-Secondary Instructor
• Curriculum Development Export
As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.
As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.
The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro.
• Process for setting up a partnership
• The allocation of net income to partners
• The recording of partner withdrawals
• Recording the partnership closing process
• Journal entries related to a partner leaving the partnership
• Journal entries related to adding a new partner to the partnership
• The liquidation process for a partnership
• Key terms definitions and explanations related to partnerships
10 Partnerships Introduction
12 Partnership Set Up New Partnership
20 Partnership Income Allocation
22 Partnership Withdraws
23 Partnership Closing Process
25 Partnership Partner Leaves Partnership Cash Equal to Capital Account
26 Partnership Partner Leaves Partnership Cash less then Capital Account
28 Partner Leaves Partnership Cash Greater then Capital Account
29 Add New Partnership - Cash More Then Capital Account
29.1 Add New Partner - Cash Less Then Capital Account
29.2 partner sells partnership interest to a new Partner
29.3 Partner sells partnership interest - Cash Received Less Then Capital
29.4 Partner sells partnership interest - Cash Received Greater Than Capital
30 Partnership Liquidation Gain on sale of Assets
40 Partnerships Liquidation Loss on sale of Assets
50 Partnership Liquidation Partner Pays Partnership for Negative Capital Account
60 Partnership Liquidation Partner Does Not Pays Partnership for Negative Capita