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    Different Accounting Entities Class Notes: 1.) Sole Trader

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    Misu Nguyen
    The document discusses the four basic forms of business structure: sole trader/single proprietorship, partnership, and company/corporation. It outlines the key characteristics of each: sole traders have no separate legal entity and unlimited liability; partnerships also have no separate legal entity and unlimited liability, with co-ownership of assets and profits; companies have a separate legal entity, limited liability, and ownership is separated from management. The document also covers different types of companies and components of company capital like share capital and reserves.

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    Different Accounting Entities Class Notes: 1.) Sole Trader

    Uploaded by

    Misu Nguyen
    5 views2 pages
    The document discusses the four basic forms of business structure: sole trader/single proprietorship, partnership, and company/corporation. It outlines the key characteristics of each: sole traders have no separate legal entity and unlimited liability; partnerships also have no separate legal entity and unlimited liability, with co-ownership of assets and profits; companies have a separate legal entity, limited liability, and ownership is separated from management. The document also covers different types of companies and components of company capital like share capital and reserves.

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    cha

    Original Title

    Notes.chapter 2

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    The document discusses the four basic forms of business structure: sole trader/single proprietorship, partnership, and company/corporation. It outlines the key characteristics of each: sole traders have no separate legal entity and unlimited liability; partnerships also have no separate legal entity and unlimited liability, with co-ownership of assets and profits; companies have a separate legal entity, limited liability, and ownership is separated from management. The document also covers different types of companies and components of company capital like share capital and reserves.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    5 views2 pages

    Different Accounting Entities Class Notes: 1.) Sole Trader

    Uploaded by

    Misu Nguyen
    The document discusses the four basic forms of business structure: sole trader/single proprietorship, partnership, and company/corporation. It outlines the key characteristics of each: sole traders have no separate legal entity and unlimited liability; partnerships also have no separate legal entity and unlimited liability, with co-ownership of assets and profits; companies have a separate legal entity, limited liability, and ownership is separated from management. The document also covers different types of companies and components of company capital like share capital and reserves.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 2

    CHAPTER 2

    Different Accounting Entities


    CLASS NOTES

    Four Basic Forms of Business Structure


    Sole Trader or Single Proprietorship
    Partnership
    Company or Corporation

    1.) Sole Trader

    Characteristics:
    No Separate Legal Entity
    Limited Life
    Unlimited Liability
    Minimum Reporting Regulations
    Limited Access to Funds
    Lower Cost to Establish

    Vocab Check!

    What is Legal Entity?

    What is Unlimited Liability?

    2.) Partnership

    Characteristics:
    No Separate Legal Entity
    Limited Life
    Unlimited Liability
    Co Ownership of Assets
    Co Ownership of Profits
    Limited Membership
    Increased Regulation
    Mutual Agency

    Partnership Agreement

    Vocab Check!

    Mutual Agency?

    ACCT 2105 Introductory Accounting Chapter 2 - CLASS NOTES 1


    3.) Company

    Characteristics:
    Separate Legal Entity
    Unlimited Life (Perpetual Life)
    Limited Liability
    Company Ownership of Assets
    Company profits belong to shareholders
    Extensive Membership
    Separation of ownership and management
    Extensive regulation

    Types of Companies
    1.) Proprietary Companies (Pty Ltd.) or Private Companies

    2.) Public Companies

    CAPITAL (OWNERS CLAIM) OF LIMITED COMPANIES

    Share Capital

    o Ordinary Shares

    o Preference Shares

    Reserves

    o Retained profit
    o General Reserve
    o Asset Revaluation
    o Others

    Bonus Shares

    Rights Issues -

    Share Transfers -

    ACCT 2105 Introductory Accounting Chapter 2 - CLASS NOTES 2

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