CPT Chapter Introduction to Partnership
CA CPT syllabus “Introduction to Partnership” explains the features of a partnership, its advantages over a sole proprietorship and the importance a Deed of Partnership. This chapter deals with the distribution of profits and the valuation of Goodwill of a partnership business. It also explains how with a change in the profit sharing ratio among partners accounting entries need to be passed to adjust Goodwill.
With Sheela Warrier.Duration:3hrs49min
|Partnership :Introduction, PL Appropriation, PSR & Goodwill||Duration (min:sec)|
|Introduction to Partnership|
|Why & What is Partnership?||07:20|
|Limited Liability Partnership (LLP)||02:42|
|In absence of agreement||03:00|
|Profit Loss Appropriation A/c|
|P&L Appropriation Account .||07:23|
|Fixed & Fluctuating Capital||05:30|
|Interest on Capital||07:41|
|Interest on Drawings||08:45|
|Fixed amount withdrawn every month||07:45|
|Guaranteed Min Profit||04:06|
|Profit Sharing Ratio|
|PSR-change in ratio||06:11|
|What is Goodwill?||07:23|
|Valuation of Goodwill||02:12|
|Av Profit Method||05:18|
|Wt. Av Profit Method||04:03|
|Super Profit Method||04:41|
Few things covered by us:
What is partnership ? What is LLP ?
Profit & Loss Appropriation
Computation of interest on capital and drawings
Change in profit sharing ratio
Pooling of resources
What is Partnership ?
It’s a relationship
Two or more persons
Share profits of a business
iv. Carried on by all or any of them acting for all.
Limited Liability Partnership
Both a partnership and a body corporate
Limited liability of partners
No liability for unauthorized acts of other partners
Taxed as a partnership
How much amount they will contribute?
Can they withdraw money?
Rate on Interest for Capital & Drawings
Sharing of Profit?
Goodwill at change of constitution of firm
In the absence of an Agreement
No interest on capital
No interest on drawings
Interest @ 6% p.a. on loan
Profit sharing ratio - equal
Salary and interest on capital payable only if there is profit
Final Accounts for Partnership
Profit & Loss A/c
Profit & Loss Appropriation A/c
Valuation of Goodwill
Average Profits Method
Super Profits Method
Goodwill - Accounting Entries
At the time of Admission
At the time of Retirement
In case of change in Profit Sharing Ratio
CPT Exam Exposure
Show you appreciate by sharing!