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2.2 - Lecture Notes - Partnership Formation PDF

13 Pages·2023·English
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by ['Katrina Regina Batac']| 2023| 13 pages| English

About 2.2 - Lecture Notes - Partnership Formation

1) Partnerships can be formed in two ways: starting a new business with two or more partners, or converting an existing sole proprietorship into a partnership. 2) When partners invest in a partnership, their investments are recorded in the partnership books. Cash contributions are recorded at face value, while non-cash assets like equipment or land are recorded at their agreed or fair market value. 3) The statement of changes in partners' equity tracks the movements in each partner's capital account, including initial investments, profit/loss sharing, and withdrawals. Profits and losses are allocated among partners according to the partnership agreement.

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Author:['Katrina Regina Batac']
Publication Year:2023
Pages:13
Language:English
Format:PDF
Price:FREE
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