Accounting for Partnerships

After studying this chapter, you should be able to do the following:• Describe the advantages and disadvantages of the partnership form oforganization.• Explain where the major differences lie in the accounting for corporations andpartnerships.• Apply the three accounting methods available to record the admission of anew partner, and evaluate the strengths and weaknesses of each method. • Apply the accounting methods for the recording of the retirement of a partner.• Prepare the journal entries to record the liquidation of a partnership when acash payment to partners is made only after the sale of all of the partnership assets.• Prepare a schedule of the liquidation of a partnership where instalment pay-ments to partners are made as cash becomes available.• Prepare a cash distribution plan prior to the commencement of the partnershipliquidation.