Accounting for Partnership Notes and Illustrations

This notes have the illustrations covering the following issues on partnerships. Please download the PDF File by clicking the Download Button Below. 

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Contents Covered in this note:


Computation and Accounting


There are four methods for valuation of goodwill

  1.  Average profit basis,
  2.  Super profit basis,
  3.  Annuity basis, and
  4.  Capitalisation basis

Accounting on the ADMISSION  of The new Partners – Issues

• Ratios – Sacrificing and New ratio

• Revaluation A/c

• Accumulated Reserves and Surplus

• Goodwill

• Capital Adjustment

Accounting on the Retirement of the partner         

Accounting on the Death of the partner

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