Partnership Accounting
3.7 (55 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
14,163 students enrolled

Partnership Accounting

Partnership formation, net income allocation, adding new partners, liquidation, partner leaving, closing process
3.7 (55 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
14,163 students enrolled
Last updated 9/2019
English
English [Auto]
Current price: $139.99 Original price: $199.99 Discount: 30% off
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This course includes
  • 14 hours on-demand video
  • 28 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Assignments
  • Certificate of Completion
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What you'll learn
  • Process for setting up a partnership
  • The allocation of net income to partners
  • The recording of partner withdrawals
  • Recording the partnership closing process
  • Journal entries related to a partner leaving the partnership
  • Journal entries related to adding a new partner to the partnership
  • The liquidation process for a partnership
  • A comprehensive problem on the accounting cycle
  • Key terms definitions and explanations related to partnerships
Requirements
  • We should have a basic understanding of financial accounting and debits and credits
Description

Partnership accounting will cover accounting topics related to a partnership form of business entity.

This partnership course will focus on the accounting issues that are different in a partnership as compared to other types of entities like a sole proprietorship or corporations. As we focus on the differences, we always want to keep in mind the similarities in accounting for different business entities. Most of what we have learned about the double entry accounting system and day to day accounting transactions in prior courses will remain the same. We are concentrating on the areas that will different because the differences are where the new information lies.

We will start by defining what a partnership is and comparing the characteristics of a partnership with other business entities. Understanding one business entity and its components are often best learned by contrasting them with the attributes of others, always considering the relative pros and cons, thinking of situations and circumstances that would benefit one form of business entity over another.

The course will discuss the process for setting up a new partnership, typically starting with the partners contributing capital to the partnership, requiring us to record the contribution and the capital accounts.

We will discuss the allocation of net income to the partners, one of the primary differences between a partnership type of entity and other types of entities. There is a lot of flexibility for net income allocation in a partnership, and this is one of its primary benefits.

The course will cover the recording of partnership draws, how to record them, as well as the closing process for a partnership. The steps of the closing process will be much the same as those for any business entity except for the allocation of net income to the partners.

We will consider the situation where a partner leaves a partnership or where a new partner is added. The transactions related to a partner leaving or being added is unique to a partnership entity.

The course will cover a partnership liquidation process or closing process. The liquidation process is a very useful exercise for any entity because it allows us to do take apart a business. We have discussed the process of putting new busses together in prior courses, but to fully understand how something works we must also take it apart. The liquidation process is particularly important for a partnership entity because it emphasizes the capital accounts and the process necessary to reduce the likelihood of problems during the process.

We also include a comprehensive problem designed to take a step back and consider all the similarities between business entities so that we can put the differences we have studied in this course into perspective. The comprehensive problem will cover the entire accounting cycle from entering journal entries and posting to the general ledger, to recording adjusting entries and creating the financial statements, to the closing process.

The course also includes definition and key accounting terms related to partnerships.

In addition to the instructional videos, this course will include downloadable

•    Downloadable PDF Files

•    Excel Practice Files

•    Multiple Choice Practice Questions

•    Short Calculation Practice Questions

•    Discussion Questions

The PDF files allow us to download reference information we can use offline and as a guide to help us work through the material.

Excel practice files will be preformatted so that we can focus on the adjusting process and learning some of the basics of Excel, like addition, subtraction, and cell relationships.

Multiple choice example question helps us improve our test-taking skills by reducing the information into the size and format of multiple choice questions and discussing how to approach these questions.

Short calculation questions help us reduce problems that have some calculation down to a short format that could be used in multiple choice questions.

Discussion Question will provide an opportunity to discuss these topics with the instructor and other students, a process many students find very helpful because it allows us to see the topic from different viewpoints.

Who will we be learning from?

You will be learning from somebody who has technical experience in accounting concepts and in accounting software like QuickBooks, as well as experience teaching and putting together curriculum.

You will be learning from somebody who is a:

•    CPA – Certified Public Accountant

•    CGMA – Chartered Global Management Accountant

•    Master of Science in Taxation

•    CPS – Certifies Post-Secondary Instructor

•    Curriculum Development Export

As a practicing CPA the instructor has worked with many technical accounting issues and helped work through them and discuss them with clients of all levels.

As a CPS and professor, the instructor has taught many accounting classes and worked with many students in the fields of accounting, business, and business applications.

The instructor also has a lot of experience designing courses and learning how students learn best and how to help students achieve their objectives. Experience designing technical courses has also benefit in being able to design a course in a logical fashion and deal with problems related to technical topics and the use of software like QuickBooks Pro.

Content Includes:

•    Process for setting up a partnership

•    The allocation of net income to partners

•    The recording of partner withdrawals

•    Recording the partnership closing process

•    Journal entries related to a partner leaving the partnership

•    Journal entries related to adding a new partner to the partnership

•    The liquidation process for a partnership

•    A comprehensive problem on the accounting cycle

•    Key terms definitions and explanations related to partnerships

Who this course is for:
  • Accounting students
  • Business owner
  • Anyone who whats to learn accounting
Course content
Expand all 100 lectures 14:04:30
+ Set up New Partnership
7 lectures 30:00
2 Set up New Partnership
01:45
PDF - 12 Set Up New Partnership
00:08
12 Partnership Set Up New Partnership
11:15
Excel Download
00:05
Worksheet - 12 New Partnership
11:22
What are the key characteristics of a partnership? Contrast them with other types of entities.
10 Discussion Question – Partnerships
1 question
10 - Multiple Choice – Partnership
05:10
Accounting Comic Break
00:15
+ Partnership Income Allocation
10 lectures 01:18:26
3 Partnership Income Allocation
01:45
PDF - 20 Partnership Income Allocation
00:08
20 Partnership Income Allocation
20:04
Excel Download
00:05
Worksheet - 20 Part 1 Partnership Income Allocation
11:33
20 - Worksheet Part 2 Partnership Income Allocation
13:02
Excel Download
00:05
Worksheet - 21 Partnership Income Allocation With Over-allocation
24:42
Discuss how to record a partner's investment and effect on the accounting equation.
20 Discussion Question – Partnerships
1 question
20 - Multiple Choice – Partnership
06:46
Accounting Comic Break 3
00:16
+ Partnership Draws
7 lectures 27:05
4 Partnership Draws
01:25
PDF - 22 Partnership Draws
00:08
22 Partnership Withdraws
10:03
Excel Download
00:05
Worksheet - 22 Partnership Withdraws
10:09
How can income and loss be allocated in a partnership?
30 Discussion Question – Partnerships
1 question
30 - Multiple Choice – Partnership
05:00
Accounting Comic Break 4
00:15
+ Partnership Closing Process
6 lectures 41:46
5 Partnership Closing Process
02:38
PDF - 23 Partnership Closing Process
00:08
23 Partnership Closing Process
12:20
Worksheet - 23 Partnership Closing Process
17:34
Describe the process for a new partner to be admitted to a partnership.
40 Discussion Question – Partnerships
1 question
40 - Multiple Choice – Partnership
08:50
Accounting Comic Break 5
00:16
+ Partner Leaves Partnership
12 lectures 55:20
6 Partner Leaves Partnership
01:12
PDF - 25 Partner Leaves Partnership Cash Equal to Capital Account
00:08
PDF - 26 Partner Leaves Partnership Cash Equal less then Capital Account
00:08
26 Partnership Partner Leaves Partnership Cash less then Capital Account
07:22
PDF - 28 Partner Leaves Partnership Cash Equal Greater then Capital Account
00:08
28 Partner Leaves Partnership Cash Greater then Capital Account
06:25
Excel Download
00:05
Worksheet - 29 Part 1 Selling Partnership Interest Leaving Partnership
15:32
Worksheet - 29 Part 2 Selling Partnership Interest Leaving Partnership
14:42
Describe the process for a partnership withdrawing from a partnership.
50 Discussion Question – Partnerships
1 question
50 - Multiple Choice – Partnership
05:40
Accounting Comic Break 6
00:15
+ New Partner is Added to Partnership
11 lectures 01:27:02
7 New Partner Added to Partnership
01:13
PDF - 29 Partnership add a partner D & D
00:08
29 Add New Partnership - Cash More Then Capital Account
09:23
29.1 Add New Partner - Cash Less Then Capital Account
15:26
29.2 partner sells partnership interest to a new Partner
10:05
29.3 Partner sells partnership interest - Cash Received Less Then Capital
05:35
Worksheet - 29.1 Part 1 Add Partner to Partnership
15:35
Worksheet - 29.1 Part 2 Add Partner to Partnership
13:06
Discuss the steps and order of steps in a partnership liquidation.
60 Discussion Question – Partnerships
1 question
60 - Multiple Choice – Partnership
04:33
Short Calculation 1
11:43
Accounting Comic Break 7
00:15
+ Liquidation of Partnership
20 lectures 03:41:03
8 Liquidation of Partnership
02:25
PDF - 30 Liquidation - Gain on Sale of Assets
00:08
30 Partnership Liquidation Gain on sale of Assets
16:54
Worksheet - 30 Part 1 Partnership Liquidation Gain on Sale of Assets
15:33
Worksheet - 30 Part 2 Partnership Liquidation Gain on Sale of Assets
21:20
PDF - 40 Liquidation - Loss on Sale of Assets
00:08
40 Partnerships Liquidation Gain on sale of Assets
13:57
Worksheet - 40 Part 1 Partnership Liquidation Loss on Sale of Assets
15:36
Worksheet - 40 Part 2 Partnership Liquidation Loss on Sale of Assets
19:45
PDF - 50 Liquidation - Partner Pays Partnership for Negative Capital Account
00:08
50 Partnership Liquidation Partner Pays Partnership for Negative Capital Account
19:24
Excel Download
00:05
Worksheet - 50 Partnership Liquidation Partner Pays Partnership for Negative Cap
28:21
PDF - 60 Liquidation - Partner Does Not Pay Partnership for Negative Capital
00:08
60 Partnership Liquidation Partner Does Not Pays Partnership for Negative Capita
20:06
Excel Download
00:05
Worksheet -60 Partnerships Liquidation Partner Does Not Pays Partnership for Neg
26:52
Describe key factors to think about when considering a partnership for a business entity.
70 Discussion Question – Partnerships
1 question
70 - Multiple Choice – Partnership
08:53
Short Calculation 2
10:58
Accounting Comic Break 8
00:17
+ Comprehensive Problem
13 lectures 02:37:23
9 Comprehensive Problem
01:50
Excel Download
00:05
1 Accounting%2C Financial - Comp Prob Service Co 1 Part 1
15:01
2 Accounting%2C Financial - Comp Prob Service Co 1 Part 2
15:10
3 Accounting%2C Financial - Comp Prob Service Co 1 Part 3
15:20
4 Accounting%2C Financial - Comp Prob Service Co 1 Part 4
22:13
5 Accounting%2C Financial - Comp Prob Service Co 1 Adjusting Entries part 5
15:02
6 Comp Prob Service Co 1 Adjusting Entries part 6
20:05
7 Accounting%2C Financial - Comp Prob Service Co 1 Financial Statements part 7
15:01
8 Accounting%2C Financial - Comp Prob Service Co 1 Financial Statements part 8
16:39
9 Accounting%2C Financial - Comp Prob Service Co 1 Closing Process Part 9
10:02
10 Comp Prob Service Co 1 Closing Process part 10
10:40
Accounting Comic Break 9
00:15
+ Key Term & Definitions
10 lectures 28:12
10 Key Term & Definitions
00:41
C Corporation Definition - What is C Corporation%3F
04:17
GeneralGeneral Partnership Defin Partner Definition - What is General Partner%3F
01:51
Limited Liability Company Definition - What is Limited Liabi (1)
03:37
Limited Partners Definition - What are Limited Partners
02:01
Mutual Agency - What is Mutual Agency%3F
02:35
Partnership Contract Definition - What is Partnership Contra
02:49
Partnership Definition - What is Partnership%3F
02:04
S-Corporation Definition - What is S Corporation%3F
05:01
Unlimited Liability Definition - What is Unlimited Liability
03:16