Beruflich Dokumente
Kultur Dokumente
COMPANIES ACCOUNTING
The Course Contents:
1- General partnership:
All partners are general partners.
2- Limited partnership:
It has 2 kinds of partners (general and limited
partners) and at least one of the partners must be general
partner.
What are the differences between the
general
A) The general and limited partner ???
partner:
1-He has unlimited responsibility towards the company's liabilities.
2- He manages the company.
3- He can enter his name in the name of the company .
B) The limited partner:
1- He has a limited responsibility towards company's liabilities, it
means that his share of loss should not exceed his capital in the
company.
2- He can't participate in the management of the company.
3-He can't enter his name in the name of the company.
First: The formation of the partnership
• If the partner pays his share in the capital in cash , we prepare the
following entry:
Dr Cr
Cash x
Partner '‘…'‘, Capital
x
Example (1)
On 1/1/2012 (A) &(B )agreed to form a general partnership with total
capital $100000 . If you know that:
1- The share of partner A in the capital is $60000 and the partner B
is the rest.
2- Each partner will pay his share in cash.
Dr Cr
Cash 100000
Partner ''A'‘, Capital 60000
Partner '‘B'‘, Capital 40000
2) Presenting the contribution as a Group of Assets :