Comments on: Accounting For Partnership-“ Formation Of Partnership And Capital Account http://basiccollegeaccounting.com/accounting-for-partnership-%e2%80%93-formation-of-partnership-and-capital-account/ Free Online Accountancy Tutorials For Colleges & Universities Tue, 06 Jan 2009 09:19:23 +0000 http://wordpress.org/?v=2.6.1 By: slang http://basiccollegeaccounting.com/accounting-for-partnership-%e2%80%93-formation-of-partnership-and-capital-account/#comment-247 slang Tue, 03 Oct 2006 15:56:49 +0000 http://basiccollegeaccounting.com/accounting-for-partnership-%e2%80%93-formation-of-partnership-and-capital-account/#comment-247 Dear Mary, u are right, I have just finished the first part re-Partnership start up accounting. The next article on dissolution of partnership where capital repayment is involved is still outstanding. In the event of capital paydown during the dissolution of the partnership, we need to do it two stages:first open a realisation a/c to find out the net profit/losses in the disposal of assets and transferred the net profit/losses proportionately to the partners' respective account and then only pay or debit the respective capital a/c. Hope it's help Dear Mary,

u are right, I have just finished the first part re-Partnership start up accounting. The next article on dissolution of partnership where capital repayment is involved is still outstanding.

In the event of capital paydown during the dissolution of the partnership, we need to do it two stages:first open a realisation a/c to find out the net profit/losses in the disposal of assets and transferred the net profit/losses proportionately to the partners’ respective account and then only pay or debit the respective capital a/c.
Hope it’s help

]]> By: Mary Berger http://basiccollegeaccounting.com/accounting-for-partnership-%e2%80%93-formation-of-partnership-and-capital-account/#comment-246 Mary Berger Tue, 03 Oct 2006 15:00:10 +0000 http://basiccollegeaccounting.com/accounting-for-partnership-%e2%80%93-formation-of-partnership-and-capital-account/#comment-246 Great information on Partnership start up accounting. What about Capital paydown or disbursement. Do you Debit Capital A & Capital B and Credit cash or do you setup a contra account? Great information on Partnership start up accounting. What about Capital paydown or disbursement. Do you Debit Capital A & Capital B and Credit cash or do you setup a contra account?

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