understanding Partnership Accounting
- I am a graduate in commerce.
- a nd also hold a degree in law (of course indian law)..
- I have 3 years of experience of teaching commerce subjects.
- I have also taught and prepared students for various competitive exams..
- Rea soning skills and Mathematics are my favourate fields of study.
- I love teaching and believe if one wants to learn then there is nothing to stop him/her from doing so.
- KEEP LEARNING !!
Experience: 3 years
Partnership Accounts is a great scoring area for your exams...
This accounting takes into account both the deed between the partners and the partnership law.
We need to understand what a Partnership is? what kind of legal obligations arises due to the formation of partnership ? what is goodwill? what are the different ratio's? like Profit sharing ratio, Sacrificing Ratio ?
What normal events arises in a partnership firm..? like admission of a new partner, death of a partner, retirement of a partner, admission cum retirement at the same time etc.
How does that events affect the accounting, Profits and how to distribure tha profits and find balances in the capital accounts and current accounts of partners?