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ACCOUNTING FOR PARTNERSHIPS

6 五月, 2015 - 17:10

Accounting for partnerships is similar to other forms of business organization. The same accounts are used, with the exception of capital accounts. Partnerships have separate drawing and capital accounts for each partner. Income is distributed differently from other forms of business organizations. Since a partnership has a limited life, special transactions need to be performed upon the death or withdrawal of a partner, dissolution and liquidation.