January 2023

Cambrige Notes: Principles of Accounting: Partnership Dissolution Entries

By |2022-09-15T12:32:13+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Partnership Dissolution Entries

  • While the dissolution of each partnership is no doubt unique
  • There are entries that are typical to the dissolution of each partnership
  • During dissolution the following entries are typically made:
    1. When we transfer provision such as for bad debts/depreciation to their respective asset accounts:
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    Principle of Accounting: The concept of goodwill

    By |2022-09-15T12:32:47+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

    ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: The concept of goodwill

    • It is not unusual for a business to be bought or sold as a going concern i.e.
    • The entire business (or business unit) and its related assets and liabilities
    • Often when a business is sold or bought it is at a price that is higher than […]
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    Cambrige Notes: Principles of Accounting: The Appropriation Account

    By |2022-09-15T12:32:05+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

    Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships:The Appropriation Account

    • Apart from a few nuances partnerships prepare normal financial statements
    • These are almost indistinguishable from those of Sole Traders
    • They include the usual Income Statement ( Trading and Profit and Loss Account) and the Statement of Financial Position
    • If this is a manufacturing partnership the Manufacturing […]
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    Cambrige Notes: Principles of Accounting: Partnership Dissolution Example

    By |2022-09-15T12:32:13+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

    Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Partnership Dissolution Example

    • We have looked at reasons why a partnership might dissolve here
    • Now we will look at an example question
    • The solution to this question can be found by clicking here

    Question

    Nkosi,Xo and Zack have been in partnership for several years, sharing profits and losses in […]

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    Principles of Accounting: Goodwill and Partnership businesses

    By |2022-09-15T12:32:46+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

    ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Goodwill and Partnership businesses

    • Now that we have explained the idea of goodwill
    • It is time we examine the concept of goodwill in relation with partnerships
    • As already explained accounting standards require that goodwill be recorded only when a business is bought or sold
    • Partnership business are special in […]
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    Cambrige Notes: Principles of Accounting: Appropriation Account Example

    By |2022-09-15T12:32:05+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

    Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Appropriation Account Example

    Example Question Appropriation Account

    Gandanga, Waeni and Banda are partners. They share profits and losses in the respctive ratios

    \tfrac{3}{8} : \tfrac{3}{8}: \tfrac{1}{4}
    For the year ended […]

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    Cambrige Notes: Principles of Accounting: Partnership Dissolution Solution to Example Question

    By |2022-09-15T12:32:13+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

    Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Partnership Dissolution Example

    • We looked at the basics of partnership dissolution here
    • We also posted an example question here
    • Now we will present the solution to that question

    The realisation account

    • Debtors and Receivables are just one and the same thing
    • Creditors can also be referred […]
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    Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

    By |2022-09-15T12:32:46+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

    ZIMSEC O Level Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

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    Cambrige Notes: Principles of Accounting: Partnership Financial Statements Example

    By |2022-09-15T12:32:06+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

    Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Partnership Financial Statements Example

    • As already said elsewhere partnerships also prepare Financial Statements at the end of every period
    • These do not differ much from say those of a Sole Trader
    • Financial Statements of a Partnership include:
    • An Income Statement for the period ended
    • An Appropriation account […]
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    Cambrige Notes: Principles of Accounting: Introduction to Accounting for Partnerships

    By |2022-09-15T12:32:03+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

    Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Accounting for Partnerships

    • It is quite common for two or more people to enter into a business partnership with one another
    • We have already looked at types of business entities here
    • You can also read more about Partnerships in a post found here
    • While most of the […]
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