AccountingCode 9706
Partnerships
What this topic asks you to be able to do
- the concept of goodwill, and how purchased goodwill differs from inherent goodwill
- how to write up the partners' capital and current accounts to enter the changes needed for goodwill and for revaluing assets when the partners' profit-sharing ratio changes, a new partner is admitted, an existing partner retires, or the partnership is dissolved
- how to draw up a partnership's appropriation account and statement of profit or loss, together with its statement of financial position, including any change to the partnership that happens before an accounting year is over
- the method for drawing up a realisation account alongside a revaluation account