Table of Contents

Partnership Accounting. 1

Partnership Advantages and Disadvantages. 1

The Partnership Agreement 2

Structure of Accounts. 3

Timing Issues. 3

Partnership Recordkeeping. 4

The Essential Accounting for Partnerships. 4

Contribution of Funds. 4

Contribution of Other than Funds. 4

Salaries and Salary Allowances. 5

Interest on Capital Balances. 5

Withdrawal of Funds. 6

Withdrawal of Assets. 6

Allocation of Profit or Loss. 6

Income Taxes. 8

Tax Reporting. 8

Case Study for Standard Partnership Operations. 8

Admission of a New Partner to the Partnership. 9

Retirement of a Partner. 11

Liquidation of a Partnership. 12

Basic Liquidation Process. 12

Partner Negative Account Balance. 13

Partner Loans. 14

Liquidations with Interim Payments. 16

Review Questions. 18

Answers to Chapter Questions. 19

Glossary. 21

Index. 22

Final Examination