In this article we will discuss about:- 1. Partnerships—Advantages and Disadvantages 2. Partnership Accounting—Capital Accounts. Partnerships—Advantages and Disadvantages: The popularity of partnerships derives from several advantages inherent to this type of organization. An analysis of these attributes explains why nearly 3.6 million enterprises in the United States are partnerships rather than corporations. One of the most common motives is the [...]
Many partnerships limit capital transactions almost exclusively to contributions, drawings, and profit and loss allocations. Normally, though, over any extended period, changes in the members who make up a partnership occur. Employees may be promoted into the partnership or new owners brought in from outside the organization to add capital or expertise to the business. Current partners eventually retire, die, [...]
In this article we will discuss about under what conditions would a partnership firm be liquified. Introduction: Partnerships can be rather frail organizations. Termination of business activities followed by the liquidation of partnership property can take place for a variety of reasons, both legal and personal. In any firm, unless there is continuous open and candid communication among equity partners, [...]