Accounting for Partnerships: 5 Key Topics
- Learn about the basics of accounting for partnerships, including how it is similar to accounting for sole proprietorships and how it differs.
- Discover the key characteristics of partnerships, including voluntary association, limited life, unlimited liability, mutual agency, and profit sharing among partners.
- Explore the accounting practices that are specific to partnerships, including the treatment of partners' capital and drawing accounts, division of income (or loss), and changes in partnership ownership.
- Find out more about the process of forming and dissolving partnerships, including the importance of a written partnership agreement and the factors that can lead to dissolution.
- Compare the three main forms of business organization (sole proprietorship, partnership, and corporation) in terms of their characteristics and accounting practices, including differences in legal treatment and liability. "