COCM 1012: Accounting for Partnerships Notes

Institution: The Cooperative University of Kenya

Course: Bachelor of Commerce

Content Category: eBooks

Posted By: Mike Njagi

Document Type: PDF

Number of Pages: 302

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Summary

This document contains definitions, explanations, and several study guides.It has been accepted by most universities for use by learners pursuing respective courses.

LEARNING OBJECTIVES
After studying this chapter you will be able to :
l Define partnership and list its essential features;
l Explain the meaning and list the contents of partnership deed;
l Recognise the relevant provisions of the Indian Partnership Act 1932, as applicable to accounting in the absence of any provision to the contrary in the partnership agreement;
l Prepare partners' capital account under fixed and fluctuating capital method;
l Distribute profit or loss among the partners and prepare profit and loss appropriation account;
l Explain how guarantee of a minimum amount of profit to a partner is treated in the books of accounts;
l Carry out past adjustments;
l Explain the meaning of goodwill and methods of its evaluation;
l Describe the accounting implications of change in profit sharing ratio; and
l Explain 'joint life policy' in relation to partnership accounts.
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