10 Questions
Which of the following is NOT a learning objective in the chapter on partnership formation?
Differentiating between the accounting for partnerships, sole proprietorships, and corporations
What is the definition of a partnership?
An unincorporated association of two or more individuals to carry on a business, with the intention of dividing the profits among themselves
When must a partnership with more than Php3,000 capital register with the Securities and Exchange Commission?
When it has more than Php3,000 capital
Which article of the civil code governs partnerships in the Philippines?
Article 1767
What is the definition of a partnership's juridical person?
A partnership with separate legal personality from its members
Accounting for partnerships, sole proprietorships, and corporations requires the ability to ______ between the three entities
differentiate
The valuation of contributions of partners is necessary to determine each partner's ______ in the partnership
capital
To account for the initial investments of the partners, the partnership must record the ______ made by each partner
contributions
In a partnership, there are peculiar accounts that are used to track specific transactions, such as the ______ account
partners' capital
A partnership with more than Php3,000 capital must register with the ______
Securities and Exchange Commission
Study Notes
Partnership Formation
- A partnership is an unincorporated association of two or more individuals to carry on a business, with the intention of dividing the profits among themselves.
- A partnership is treated as a juridical person, having a separate legal personality from that of its members.
- A partnership with more than Php3,000 capital must register with the Securities and Exchange Commission.
- Partnerships are governed by the Civil Code, specifically Article 1767 to 1867 of the Philippines.
Accounting for Partnerships
- Differentiate between the accounting for partnerships, sole proprietorships, and corporations.
- Valuation of contributions of partners is a key aspect of partnership accounting.
- Initial investments of partners to the partnership are accounted for separately.
- Peculiar accounts used in a partnership include:
- Partner's capital accounts
- Partner's drawing accounts
- Partner's current accounts
- Partnership profit and loss accounts
- Transactions that affect these accounts include:
- Initial investments
- Partner's drawings
- Profit and loss distributions
Test your knowledge on accounting for special transactions in advanced accounting! This quiz covers partnership formation, including the differences between partnerships, sole proprietorships, and corporations, as well as the valuation of partner contributions and initial investments. Perfect for students and professionals looking to enhance their understanding of this topic.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
