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partnership, not expenses - Coggle Diagram
partnership
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partnership dissolution
- admission of a new partner
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- investment of asset by incoming partner
- increase assets of partnership
steps
- record investment or CC
- determine AC (Total AC * % new partner )
- record bonus or revaluation
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- retirement or withdrawal of partner
- find the retiring partner's interest (adjusted by profit or loss up to retirement date, changes in valuation (BV vs. FV), errors in net income)
- settlement is equal, (more than or less than = bonus method) interest
- divide the excess using remaining P&L of the partners
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- incorporation of a partnership
- adjust capital (like retiring) 2. capital = stocks
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