After completing this chapter you should be able to: Identify the characteristics of the partnership form of business organization, explain the accounting entries for the formation of a partnership, identify the bases for dividing net income or net loss,.and other contents. | Prepared by Coby Harmon University of California, Santa Barbara Westmont College 12-1 12 Accounting for Partnerships Learning Objectives After studying this chapter, you should be able to: [1] Identify the characteristics of the partnership form of business organization. [2] Explain the accounting entries for the formation of a partnership. [3] Identify the bases for dividing net income or net loss. [4] Describe the form and content of partnership financial statements. [5] Explain the effects of the entries to record the liquidation of a partnership. 12-2 Preview of Chapter 12 Accounting Principles Eleventh Edition Weygandt Kimmel Kieso 12-3 Partnership Form of Organization Partnership, an association of two or more persons to carry on as co-owners of a business for profit. Type of Business: 12-4 Small retail, service, or manufacturing companies. Accountants, lawyers, and doctors. LO 1 Identify the characteristics of the partnership form of business organization. Partnership Form of Organization Characteristics of Partnerships Association of Individuals Legal entity. Accounting entity. Net income not taxed as a separate entity. Mutual Agency 12-5 Act of any partner is binding on all other partners, so long as the act appears to be appropriate for the partnership. LO 1 Identify the characteristics of the partnership form of business .
