Partnership accounting, from deed to dissolution.
Learn how partnership firms keep accounts, from the partnership deed and profit sharing to admission, retirement, death, and dissolution of partners.
Course overview
A partnership is a business owned by two or more people who agree to share its profits and losses. This course explains how partnership accounts are prepared, and how the books are adjusted when partners join, leave, or the firm closes.
- Understand what a partnership is, and how its accounts differ from a sole proprietor's
- Read a partnership deed, and learn the rules that apply when it is silent
- Share profits and losses among partners
- Calculate interest on capital and interest on drawings
- Record goodwill, revaluation of assets, and capital adjustments when a partner is admitted
- Settle the accounts on the retirement or death of a partner
- Close the books on dissolution, and settle assets and liabilities
- Practise the entries and calculations for each situation
Partnership Accounting lessons
Follow the lessons in order, or search and filter to jump to a subject.
Introduction to Partnership Accounting
Learn what a partnership is and how its accounts are kept.
Partnership Deed and Profit Sharing
Understand the deed and how profits and losses are shared.
Interest on Capital and Drawings
Calculate interest on capital and on partners' drawings.
Admission of a Partner
Record goodwill, revaluation, and capital when a new partner joins.
Retirement and Death of a Partner
Settle the accounts when a partner leaves or passes away.
Dissolution of Partnership
Close the firm's books and settle assets and liabilities.
Learn the basics, then see how the firm changes.
The lessons start with the deed, profit sharing, and interest, then cover admission, retirement or death of a partner, and finally dissolution of the firm.