Professional Documents
Culture Documents
Partnership Financial Statements
Partnership Financial Statements
statements
Income Statement
Appropriation account
Current accounts
Statement of financial position
advantages
⚫ More capital
⚫ More ideas
⚫ Sharing of responsibilities
⚫ Better management
⚫ Expansion, growth
⚫ Sharing of loss
Disadvantages
⚫ Dispute/ disagreement
⚫ Delay in decision making
⚫ Unlimited liability
⚫ Profit is shared
⚫ Frozen investments
Partnership agreement/contract/deed
⚫ 1Capital contribution
⚫ 2Profit and loss sharing ratio
⚫ 3Salary / bonus / commission
⚫ 4Interest on capital
⚫ 5Interest on drawings
⚫ 6Procedure for admission and retirement
⚫ 7Procedure for revaluation of assets
⚫ 8Procedure for calculating goodwill
Provisions of partnership Act 1890 in the absence of deed