CPT Chapter Partnership : Admission, Death and Retirement
CA CPT syllabus “Partnership : Admission, Death and Retirement” deals with accounting entries at the time of admission, retirement or death of a partner. It deals with the revaluation of assets and liabilities, change in profit sharing ratio, treatment of goodwill, distribution of accumulated profits and losses, settlement of dues to partners etc.
With Sheela Warrier.Duration:5hrs09min
Notes
Few things covered by us:
Adjustments to be made
New & Sacrificing Ratio
Share of Goodwill
Revaluation of Assets and Liabilities
Accumulated Profits and Losses
Goodwill
Purchased Goodwill
Inherently generated Goodwill
Goodwill premium paid by new partner
Treatment of GW premium
Goodwill Premium
What is Goodwill Premium ?
If full value exists in Balance Sheet
If Goodwill is undervalued in Balance Sheet
If Goodwill is overvalued in Balance Sheet
Goodwill Premium
Maybe paid privately to the old partners
Maybe retained in the business
Maybe withdrawn by the old partners
Premium may not be brought in by the new partner
Revaluation of Assets and Liabilities
Revaluation Account
or
Profit and Loss Adjustment
Transfer profit / loss to old partners accounts
Memorandum Revaluation Account
Without Revaluation account
Retirement of Partner
Adjustments to be made
Gaining Ratio
Share of Goodwill
Revaluation of Assets and Liabilities
Accumulated Profits and Losses
Joint Life Policy
Final Payment
Revaluation of Assets and Liabilities
Revaluation Account
or
Profit and Loss Adjustment
Transfer profit / loss to all partners accounts
Memorandum Revaluation Account
Without Revaluation account
Life Policy
Joint Life Policy
Single Life Policy
Objective
Premium, Surrender value, Maturity
Accounting Treatment - 3 methods
Single Life Policies
Transfer premiums to Profit and Loss a/c
Retiring Partner’s policy is surrendered
Retiring Partner is entitled to share SV of all policies.
Final Settlement
Balance in Capital a/c
Share of Reserves
Share of Goodwill
Revaluation Profit/Loss
Share in Life Policy
Death of Partner
Adjustments to be made
Gaining Ratio
Share of Goodwill
Revaluation of Assets and Liabilities
Accumulated Profits and Losses
Profit in CY up to date of death
Joint Life Policy
Final Payment
CPT Exam Exposure
Company Accounts Introduction,Issue, Forfeiture and Re-issue of Shares
Partnership-Introduction-PSR-Goodwill
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