Documente Academic
Documente Profesional
Documente Cultură
Partnership
Liquidation And
Incorporation; Joint
Ventures
McGrawHill/Irwin
TheMcGrawHillCompanies,Inc.2006
Chapter 3:
Scope of Chapter
Incorporation of LLP
Joint Ventures
Accounting Methods &
Accounting Issues
Accounting for Incorporated &
Unincorporated Joint
Ventures
SEC Enforcement Actions for
Wrongful Application of
Accounting Standard
Liquidation of Partnership
Meaning of Liquidation
Division of Losses & Gains
Distribution of Cash or Other Assets
Payments to Partners of an LLP
Explanation of different case scenarios
Illustrations & Case Studies
Preparation of Cash Distribution Program
Installment Payments to Partners
General Principles Guiding Installment Payments
of incorporating LLP
Accounting Concerns during Incorporation
Illustrations
Joint Ventures
Definition
Present-Day Joint Ventures
Accounting for Corporate or LLC Joint Ventures
Accounting for Unincorporated Joint Ventures
Brief description of Equity Method of Accounting for
Investment in Common Stock
SEC Enforcement Actions Dealing with Wrongful
Application of Accounting Standards
Illustrations & Case Studies
Review Questions, Problems & Exercises
Liquidation of Partnership
The
Meaning of Liquidation
Always first divide the loss / gain from the realization of noncash assets before distributing cash.
As assets are realized, allocate any gains or loss to
partners capital accounts in the income-sharing ratio.
All creditors must have been paid before distribution of
cash.
The final credit balances of the partners capital & loan
ledger accounts should be equal to the cash available for
distribution.
Payments are then made in the amounts of the partners
respective equities in the partnership.
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Case 1:
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Case 1:
ASSETS
Cash
$ 20,000
Other Assets $ 80,000
LIABILITIES
Liabilities $ 30,000
D, Capital $ 40,000
E, Capital $ 21,000
F, Capital $ 9,000
Total
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Total
$ 100,000
$ 100,000
Case 1:
Assumptions for the Illustration:
Income
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Case 2:
Equities of Two Partners Are Not Sufficient To
Absorb Their Shares of Loss From Realization
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Case 2:
Assumptions for Illustration
JKL&M
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Joint Ventures
A Joint