accounting for partnerships-basic consideration

7/28/2019 Accounting for Partnerships-basic Consideration

1/35

BASIC CONSIDEDRATION and FORMATION


2/35

Based on Civil Code of the Philippines, Article

1767

Two or more persons bind themselves

Contribution of money, property, or

industry to a common fund

Intention of dividing the profit among

themselves


3/35

Based on Civil code of the

Philippines, Article 1768

It has a juridical personalityseparate and distinct from

that of each partners


4/35

1. Mutual Contribution

2. Division of Profit and Losses

3. Co-ownership of Contributed Assets4. Mutual Agency

5. Limited Life

6. Unlimited Liability7. Income Taxes

8. Partners Equity Accounts


5/35


6/35

Oral Recitation:

2. What are the advantages

of partnership comparedto Corporations? Explain


7/35

Oral Recitation:

3. What are the

disadvantages ofPartnership? Why do you

think that it is a

disadvantage?


8/35


9/35

1. According to object

a. Universal partnership of all present property

b. Universal partnership of profits

c. Particular Partnership

2. According to liability

a. General

b. Limited

3. According to duration

a. Fixed Term/ Particular Undertaking

b. At will

4. According to purpose

a. Commercial/ Trading Partnership

b. Professional/ Non-trading Partnership

5. According to legality of existence

a. De jure Partnership

b. De Facto Partnership


10/35

I am a classification of

partnership whose

contributions aredeterminate such as use or

fruit, specific undertaking or

the exercise of a profession

or vocation.


11/35


12/35


13/35


14/35

I am a classification ofpartnership wherein all that thepartners may acquire by their

industry or work during theexistence of the partnershipand the use of whatever thepartners contributed at thetime of the institution of thecontract belong to thepartnership.


15/35


16/35


partnership on which my

creditors can go after theseparate properties of the

partners to suffice payment

of my liabilities.


17/35


18/35


partnership on which creditors

can only go after the personalcontributions of the partners to

suffice payment of partnership

liabilities. However in mypartnership there should be at

least one general partner.


19/35


20/35


partnership on which

duration of existence isdetermined and specified.


21/35


22/35


23/35


24/35


partnership on which I am

formed for the exercise ofprofession.


25/35


26/35


partnership on which I am

formed for the transaction ofbusiness.


27/35


28/35


29/35


30/35

My partnership has failed to

comply with all the legal

requirements for itsestablishment.


31/35


32/35

General Partner

Limited Partner

Capitalist Partner

Industrial PartnerManaging Partner

Liquidating Partner

Dormant Partner Silent Partner

Secret Partner

Nominal Partner or Partner by estoppel


33/35

- Embodies the agreements of the partnershipEssential provisions that it should contain:

1. The partnership name, nature, purpose andlocation;

2. The names, citizenship and residences of thepartners;

3. The date and formation and the duration ofthe partnership

4. The capital contribution of each partner, the

procedure for valuing non-cash investments,treatment of excess contribution (as capital oras loan) and the penalties for a partnersfailure to invest and maintain the agreedcapital;


34/35


35/35

T register a partnership with the SEC, here are thebasic steps to follow:

1. Have your proposed business name verified in theverification unit of SEC;

2. Submit the following documents:

Articles of Partnership Verification slip for the Business Name

Written undertaking to change business name if required

Tax identification number of each number and/or that ofthe partnership

Registration data sheet for partnership dulyaccomplished in six copies

Other documents that may be required

3. Pay the registration/filing and miscellaneous fees;

4. Forward documents to the Sec Commissioner forsignature.

accounting for partnerships-basic consideration

Documents