define

Character

advantage

Disadvant.

division
PERSEKUTUAN
Methods

illustration

Ill.meth-2
Presented by
Change
compos.
Liquidation

reason Dr. Wawan Sukmana,Msi, Ak, CA

illustration

Ice Break

Penutup
 Partnership
define
define

Character

advantage

As association of two or more

Disadvant.

division

Methods

illustration
persons to carry on as co-owners
Ill.meth-2 a business for profit
Change
compos.
Liquidation

reason

illustration

Ice Break

Penutup
 Characteristics
define

Character
Character

advantage Voluntary association

Disadvant.

division Mutual Agency

Methods

illustration Limited Life ( dissolution is coused by insanity ,etc)

Ill.meth-2
Change
compos. Unlimited liability
Liquidation

reason co-ownership of property

illustration

Ice Break

Penutup
 Advantage of Partnership
define

Sufficiently flexible to permit

Character

advantage
advantage

Disadvant. reasonable accumulations of capital

division
and talent
Easier & less expensive to organize
Methods

illustration

Ill.meth-2 than corporation

Not required to observe as many law
Change
compos.

& regulations as a corp.

Liquidation

reason

illustration
Not subject to separate corp. taxation
Ice Break
because each partner reports his or
her share of partnership income and
Penutup

is individually taxes.
 Disadvantage
define

Character

advantage

Disadvant.
Disadvant.

division
Unlimited liability feature
Methods

illustration
Mutual Agency
Ill.meth-2
Change
compos.
Liquidation

reason

illustration

Ice Break

Penutup
 Division of partnership
define
income or loss
Character

advantage

Note: if the agreement is silent with

Disadvant.

division
division

Methods

illustration
respect to the devision of
Ill.meth-2 income or losses, income or
losses are divided equally
Change
compos.
Liquidation

reason
among the partner
illustration

Ice Break

Penutup
 example
define

Character

advantage Jack and Daniel have a partnership.

The partnership agreement state that
Disadvant.

division
division

Methods

illustration
in sharing income and losses, Jack is
Ill.meth-2
Change
to be given credit for a salary of
compos.
Liquidation
$10.000 and the remaining net
reason

illustration
income is tobe shared equally by the
Ice Break two partners. Net income for the year
is $50,000.
Penutup
 Answer
define

Character
Jack Daniel Total Tobe
advantage
Distributed
Disadvant.

division
division
Net Income $ 50,000
Methods Salary to Jack $ 10,000 $ 10,000 $ 40.000
illustration
Remainder equally $ 20,000 $ 20,000 $ 40,000 -0-
Ill.meth-2
Change Distribution $ 30,000 $20,000 $ 50.000
compos.
Liquidation

reason

illustration

Ice Break

Penutup
 Methods of dividing
define

1. Net Income divided in set ratio :

Character

advantage

Disadvant. a.Equally
division

Methods
Methods
b. Agreed ratio other than equal
illustration c. Ratio of partnerscapital account balance
Ill.meth-2 at the beginning of fiscal period.
d. Ratio of average capital investment.
Change
compos.
Liquidation

reason

illustration 2. Net income divided by allowing interest on

Ice Break the capital investments, or salaries,
or both, with remaining net income
Penutup

divided in an agreed ratio.

 Illustration
define

Character

advantage The partnership of Mira and Santika

get net income for the year ended
Disadvant.

division

Methods

illustration
illustration
December 31, 2013 was $ 60,000.
Ill.meth-2
Change
During 2013 Miras drawing were
compos.
Liquidation
$14.000,and Santikadrawing were
reason

illustration
$22,000. The capital account balance
Ice Break of the partners on December 31,2013
were Mira $85,000 and santika
Penutup

$ 134,000.
 Illustration answers
define

Character

advantage a. Net Income Divided equally;

Disadvant.

division Assume the income and loss ratio is 1:1

Methods

illustration
illustration or 50% and 50%
Ill.meth-2
Change
compos.
Liquidation
Jurnal:
reason
Income summary $ 60,000
illustration

Ice Break
MirasCapital $ 30,000
Penutup Santikascapital $ 30,000
(to record distributation of net income to partners)
 Illustration answers
define

Character

advantage b. N.I divided by Agreed ratio other than equal.

Disadvant.

division Assume that the agreed ratio is 3:2 to Mira

Methods

illustration
illustration and Santika respectively, or 60%:40%.
Ill.meth-2
Change
compos.
Liquidation
Journal:
reason
Income summary $ 60,000
illustration MirasCapital $ 36,000
Ice Break Santikascapital $ 24,000
Penutup
(to record distributation of net income to partners)
Computation:
60% X $60,000= $36,000 ;
40% X $ 60,000=$ 24,000
 Illustration answers
define

Character c. N.I Divided by Ratio of partnerscapital

advantage

Disadvant.
account balance at the beginning of fiscal
division period.
Methods

illustration
illustration
Assume: Mira and santika capital balances on
Ill.meth-2 January 2013,were $ 40,000 and $80,000
Change
compos.
Liquidation
respectively, so total of capital in begining
reason of the year was $ 120,000.
illustration Journal:
Ice Break Income summary $ 60,000
Penutup Miras Capital $ 20,000
Santikas capital $ 40,000
(to record distributation of net income to partners)
computation:
Mira = 40.000/120.000 x 60.000 =20,000
Santika = 80,000/120,000 x 60.000= $ 40,000
 Illustration answers
define

Character d. N.I Divided by Ratio of average

advantage

Disadvant.
capital investment
division
Assume
Methods

illustration
illustration

Ill.meth-2
Change Journal:
compos. Income summary $ 60,000
Liquidation
Miras Capital $ 21,429
reason
Santikas capital $ 38,571
illustration (to record distributation of net income to partners)
Ice Break

Penutup computation:
Mira = 50.000/140.000 x 60.000 =$21,429
Santika = 90,000/140,000 x 60.000= $ 38,571
 Computation of average capital
Miras Cap.
Date Debits Credits Balance Month Month-
define dollar
Character Jan-1 $40,000 6 $240,000
advantage
July-1 $15.000 55,000 5 275,000
Disadvant.

division
Dec-i 30,000 85,000 1 85,000
Methods 12 $600.000
illustration
illustration
Average capital of Mira ; 600,000 /12 = $ 50,000
Ill.meth-2
Change
compos. Santikas Cap.
Liquidation Date Debits Credits balance Moth Moth-
reason Dollar
illustration
Jan-1 $ 80,000 7 $ 560,000
Ice Break

Penutup
Aug-1 $ 4,000 84,000 3 252,000
Nov-1 50,000 134.000 2 268,000

Average capital of Santika; 1.080.000 /12 = $ 90,000

 Metod-2
define

Character Net income divided by allowing interest

advantage
on the capital investments, or salaries,
Disadvant.

division or both, with remaining net income

Methods

illustration
divided in an agreed ratio.
Ill.meth-2
Ill.meth-2
Change
compos. Continuing the example of Mira Santika Partnership,
Liquidation

reason
assume that salaries allowed are Mira , $ 16,000 and
illustration Santika $ 10,000. The partner are also to be allowed
Ice Break

Penutup
6% interest on their beginning capital balance.
January 1 capital balance wereMira$ 40,000 and
Santika $ 80,000. The remaining income is tobe
divided equally.
 Distribution Tabel
define

Character
Mira Santika Total Distribution
advantage

Disadvant.
Net income $ 60,000
division salary $ 16,000 $ 10,000 $ 26,000 34,000
Methods Iterest 6% 2,400 4,800 7,200 26,800
illustration
Remaider 13,400 13,400 26,800 -0-
Ill.meth-2
Ill.meth-2
Change Distribution $ 31.800 $ 28.200 $60,000
compos.
Liquidation

reason

illustration
Journal:
Ice Break

Penutup
Income summary $ 60,000
MirasCapital $ 31,800
Santikascapital $ 28,200
(to record distributation of net income to partners)
 How if get loss ?
define

Character
Mira Santika Total Distribution
advantage NetAssume
loss
get loss $ 20,000 ($ 20,000)
Disadvant.

division salary $ 16,000 $ 10,000 $ 26,000 (46,000)

Methods Iterest 6% 2,400 4,800 7,200 (53,200
illustration
Remaider (26,600) (26,600) (53.200) -0-
Ill.meth-2
Change Distribution ($8.200) ($11,800) ($20,000)
compos.
Liquidation

reason

illustration
Journal:
Ice Break MirasCapital $ 8,200
Penutup Santikas capital 11,800
Income Summary $ 20,000
(to record distributation of net loss to partners)
 Change in Partnership Composition
define

Character Retirement
Admission of Withdrawal
advantage
of new Partner of Partner
Disadvant.

division

Methods

illustration Sale of
Ill.meth-2 interest in
Purchase of Withdrawal
Change
Change
Investment personal
compos.
compos.
an interest in of asset
Liquidation in the transaction
transaction Partnership individual
reason
individual
illustration

Ice Break 1. Retiring partner receives adjusted

Penutup
1. New Partner (N.P) receives an interest equal to
amount Invested. *
2. N.P Receives an interest less than invested.*
3. N.P received an interest greater than amount
invested.*
book value equity.*
2. Retiring partner receives more
than the book value of equity.*
3. Retiring partner receives less than
the book value of equity Retiring
partner receives *
 Purchase of an interest in transaction
define
individual
Character

advantage Assume that joko and Bowo are partners

Disadvant.

division with capital account balances of $ 15,000

Methods

illustration
and $ 13,000 respectively. Akhmad
Ill.meth-2
Change
Change
purchases from Bowo an $ 8,000 interest in
compos.
compos.
Liquidation
the partnership capital.
reason

illustration
Journal entry:
Ice Break

Penutup
Bowo Capital 8,000.
Akhmad Capital 8,000
(to transfer $ 8,000 of Bowointerest to
Akhmad capital )
 1. New Partner receives an interest
define
equal to amount Invested
Character

advantage Assume that joko and Bowo are partners with

Disadvant.

division capital account balances of $ 15,000,and

Methods

illustration
$ 13,000 respectively. Joko and Bowo agreed
Ill.meth-2
Change
Change
to admit Cece as partner with a 50% interest
compos.
compos.
Liquidation
in the partnership in return for an investment
reason
Journal entry:
illustration

Ice Break
Cash 14,000
Penutup Cece Capital 14,000
(to record Ceces investment in partnership )
Calculation; JokoCapital $ 15,000
Bowocapital $ 13,000
Total equity 28,000
28,000 x 50% = 14,000
 2. New Partner Receives an interest
define
less than invested
Character

advantage Assume that joko and Bowo are partners

Disadvant.

division with capital account balances of $15,000,and

Methods

illustration
$ 13,000 respectively. Share icome and loss
Ill.meth-2
Change
Change
in ratio 1:1. Joko and Bowo agreed to admit
compos.
compos.
Liquidation
Reni as partner with a one-fourth interest in
reason

illustration
both capital and income in exchange for
Ice Break $.10,000
Penutup
Computed:
Equity of old partners ( $15,000+13,000)....= $ 28,000
Investment of Reni......................................= 10,000.
Total equity of new partner ...................... = 38,000
Renis one-fourth equity ( 38,000x1/4)..... = 9,500
 continued
define

Character Journal :
advantage
Cash .................. 10,000
Disadvant.

division
Reni, Capital ..................9,500
Methods Joko Capital....(1/2x 500)... 250
illustration Bowo Capital ..(1/2x500) ..... 250
Ill.meth-2
Change
Change
(To record Renis investment in
compos.
compos. partnership)
Liquidation

reason

illustration

Ice Break

Penutup
 3. New Partner received an interest
define
greater than amount invested
Character

advantage Assume that joko and Bowo are partners

Disadvant.

division with capital account balances of $15,000,and

Methods

illustration
$ 13,000 respectively. Share icome and loss in
Ill.meth-2
Change
Change
ratio 1:1. The partnership desperately needs
compos.
compos.
Liquidation
cash so, the partner s are willing to give mrs
reason

illustration
Cicih a one-fourth equity interest in the
Ice Break partnership for an investment of only $ 5,000
Penutup
cash. Mrs. cicih agree!
 continued
define

Character Computed:
advantage
Equity of old partners ( $15,000+13,000)....= $ 28,000
Disadvant.

division
Investment of Cicih......................................= 5,000.
Methods Total equity of new partner ...................... = 33,000
illustration Cicihs one-fourth equity ( 33,000x1/4)..... = 8.250.
Ill.meth-2
Change
Change
compos.
compos. Journal :
Liquidation

reason Cash ................................... 5,000

illustration Joko Capital....(1/2x 3.250)... .. 1,625
Ice Break
Bowo Capital ..(1/2x 3.250) ...1,625
Penutup
Cicih capital............................ $ 8.250
(To record Cicihs investment in partnership)
 Sale of interest in personal transaction
define
individual
Character

advantage
Assume, that Harris,a partner in the Harris,
Disadvant.

division
Brown and wilson partnership, sell his $
Methods 100,000 interest in the partnership to Brown
illustration

Ill.meth-2
and willson ( equally) for $ 100,000.
Change
Change
compos.
compos.
Liquidation

reason Journal :
illustration

Ice Break
Haris Capital 100.000
Penutup Brown Capital................ 50,000
Willson Capital ...........50,000
(To transfer Harris capital balance to brown
and willson)
 continued
define

Character

advantage If Harris sells his equity interest to a new

Disadvant.

division partner, mrs. Cucu for $ 85,000, the journal

Methods

illustration
entry is:
Ill.meth-2
Change
Change
compos.
compos.
Journal :
Liquidation
Haris Capital 100.000
reason

illustration
Cucu Capital 100.000
Ice Break (To transfer Harris capital balance to new partner,
Penutup mrs. Cucu)
 1.Retiring partner receives adjusted
define
book value equity
Character

advantage Assume that Gatot, Solmet and Rosy are partner

Disadvant.

division
sharing income and losses in a 3:1:1 ratio. Rosy
Methods decide to retire when the partner balance sheet is
illustration
Asset Equity
Ill.meth-2
Change
Change Cash..............................$ 30,000 Gatot Capital .........................$ 50,000
compos.
compos.
Liquidation
Acc. Rec........................ 10,000 Solmet Capital ..................... 30,000
reason Merch. Inventory.......... 40,000 Rosy Capital ......................... 20,000
illustration Equipment $50,000
Ice Break Acc.Depr. 30.000 20.000
Penutup Total Aset $ 100,000 Total Equity $ 100,000

The Audit result :

1. Uncollectible of Acc. Rec $ 500 3. Plant & equip. Are revalued $54.000
2. Merch.inv. is revalued at $ 45,500 4. Acc. Depr. Is increased to $ 32,000
 Adjustment journal from audit result :
define

Character 1. Gatot capital..... 300

advantage Solmet Capital 100
Disadvant.
Rosy capital 100
division

Methods
Account receivable 500
illustration (To write off uncollectible Acc. Receivable)
Ill.meth-2
Change
Change
compos.
compos. 2. Merchandise Inventory ...... 5.500
Liquidation

reason
Gatot Capital 3.300
illustration Solmet Capital 1.100
Ice Break Rosy capital 1.100
(To revalue Inventory)
Penutup
 3. Equipment ................... $ 4.000
Acc. Depreciation 2,000
define Gatot Capital 1.200
Character Solmet Capital 400
advantage
Rosy capital 400
Disadvant.
(To revalue Plant equipment )
division

Methods The Partner equity become :

illustration

Ill.meth-2 Gatot Capital ........................$ 54.200

Change
Change
compos.
compos. Solmet Capital ...................... 31,400
Liquidation
Rosy Capital ......................... 21,400
reason

illustration

Ice Break

Penutup
Rosy Capital $ 21,400
Cash 21,40
(Record Rosys withdrawl from partnership)
 2. Retiring partner receives more than the
define
book value of equity
Character

advantage Illustrate: Nana, Ecin and Yaya are partners

Disadvant.

division who share income and losses in 3:2:1 ratio.

Methods

illustration
Ecin withdrawl from the partnership at a time
Ill.meth-2
Change
Change
when it has the following asset and equity :
compos.
compos.
Liquidation

reason
Asset Eqity
illustration Cash ............................. $ 30,000 Nana Cap ital ....................... $ 50,000
Ice Break Merch. Inv,,,,,,,,,,,,,,,,,,, 40,000 Ecin Capital ........................ 25,000
Penutup
Equipment Net ........... 20,000 Yaya Capital .......................... 15,000
Total Asset ................. 90,000 Total Equity ............................ 90,000
 continued
define

Character
Partner agree that asset undervalued by $
advantage

Disadvant. 3,000,but they do not wish to adjust the

division

Methods
account to current market. If account had
illustration been revalued,Ecin capital account would
Ill.meth-2
Change
Change
compos.
compos.
had been increased by $ 1,000 ( 2/6x3000)
Liquidation

reason
Ecin Capital ............................... 25,000
illustration
Nana Capital .............................. 750 (3/4x1,000)
Ice Break

Penutup
Yaya Capital ............................... 250 ( 1/4x1,000)
Cash ............................................... 26.000.
(To record ecin withdrawl from partnership)
 3. Retiring partner receives
define
less than the book value
Character

advantage Ilustrate; Nana, Ecin and Yaya are partners

Disadvant.

division who share income and loss 8:7:5 ratio. The

Methods

illustration
partnership balance sheet as follow:
Ill.meth-2
Change
Change
compos.
compos.
Liquidation

reason

illustration

Ice Break

Penutup
 Continued
define

Character

advantage Yaya axious draw from partnership and willing

Disadvant.

division to accept with $ 14,000. Another partner

Methods

illustration
agreed!
Ill.meth-2
Change
Change
compos.
compos.
Liquidation

reason
Yaaya Capital ........................ 15,000
illustration
Cash.............................. 14,000
Ice Break

Penutup
Nana Capital .................... 533 ( 8/15x1,000)
EcinCapital............................ 467 (7/15x1,000)
(To record yaya withdrawl from partnership)
 LIQUIDATION OF PARTNERSHIP
define

Character

advantage Means that business operations

have ended, assets have been sold
Disadvant.

division

Methods

illustration
for cash, cash has been paid to
Ill.meth-2
Change
creditors and partner, and the
compos.
Liquidation
Liquidation
partnership has been legally
reason

illustration
terminated.
Ice Break

Penutup
 Reasons for liquidation
define

Character

advantage 1. The objective sought in forming the

Disadvant.

division
partnership has been achieved
Methods

illustration
2. The time period for wich the
Ill.meth-2 partnership was formed has expired.
Change
compos.
Liquidation 3. Newly enacted legislation has made
reason
reason

illustration
the partnerships activities illegal
Ice Break
4. The partnership or one of its partner
is bankrupt.
Penutup
 Illustration
define

Character

advantage The Partnership of Ring, Scott and Terry is

Disadvant.

division liquidated on August 1 ,2013. The income and

Methods

illustration
loss ratio is Ring 40%,; Scott 35%; and Terry
Ill.meth-2
Change
25%. A Trial balane prepare as follow:
compos.
Liquidation
Ring, Scot and Terry
reason
Trial Balance
August 1,2013
illustration
illustration
Debet Credit
Ice Break
Cash ......................................................... $ 10,000
Penutup
Other asset ................................................ 90,000
Other liabilities ......................................... - $ 10,000
Rings Capital ............................................ - 30,000
Scott Capital ............................................ - 30,000
Terry Capital ............................................ - 30,000
 Case -1 Asset Sold at a gain
define

Character Other asset are sold for $ 95,000.

advantage
Desc. Cash Other Liabilities Rings Scotts Terry
Disadvant.
Assset capital capital Capital
division
40% 35% 25%
Methods
10,000 90,000 10,000 30,000 30,000 30,000
illustration

Ill.meth-2
a)Sale of 95,000 90,000 - 2,000 1,750 1,250
Change Asset $
compos.
95,000
Liquidation

reason 105,000 0 10,000 32,000 31,750 31,250

illustration
illustration b)Pay liability 10,000 - 10,000
Ice Break
95,000 - 0 32,000 31,750 31,250
Penutup
c) Distribute 95,000 - - 32,000 31,750 31,250
Balance 0 0 0 0 0 0
 journal
define a) Cash ..................... 95,000
Character
other asset 90.000
advantage
Rings Capital 2,000
Disadvant.
Scott Capital 1,750
division

Methods
Terry Capital 1,250
illustration (To record disposalplant aset and distribute of
Ill.meth-2
gain)
Change
compos.
b) Other liability ................ 10,000
Liquidation Cash 10,000
reason
(To record the settlement of liability )
illustration
illustration

Ice Break

Penutup
c) Rings Capital ................ 32,000
Scott capital 31.750
Terry capital 31.250
Cash 95.000
(To record distribute of cash)
 Case -2; Asset Sold at Loss
define

Character The non cash asset are sold for $ 70,000

advantage
Desc. Cash Other Liabilities Rings Scotts Terry
Disadvant.
Assset capital capital Capital
division
40% 35% 25%
Methods
10,000 90,000 10,000 30,000 30,000 30,000
illustration

Ill.meth-2
a)Sale of 70,000 90,000 - 8,000 7,000 5,000
Change Asset $
compos.
70,000
Liquidation

reason 80,000 0 10,000 22,000 23,000 25,000

illustration
illustration b)Pay liability 10,000 - 10,000
Ice Break
70,000 - 0 22,000 23,000 25,000
Penutup
c) Distribute 70,000 - - 22,000 23,000 25,000
Balance 0 0 0 0 0 0
 journal
define
a) Cash ..................... 70,000
Character
Rings Capital 8,000
advantage

Disadvant.
Scott Capital 7,000
division Terry Capital 5,000
Methods other asset 90.000
illustration (To record disposalplant aset and distribute of
Ill.meth-2 gain)
Change
compos. b) Other liability ................ 10,000
Liquidation
Cash 10,000
(To record the settlement of liability )
reason

illustration
illustration

Ice Break

Penutup
c) Ringscapital............... 22,000
Scotts capital 23.000
Terry capital 25.000
Cash 70,000
(To record the settlement of liability )
 Case 3, Asset sold at a loss when one
define
partner share of the loss
Character

advantage The non cash are sold for only $ 10,200.

Disadvant.

division Desc. Cash Other Liabilities Rings Scotts Terry

Methods Assset cap 40% cap.35% cap.25%
illustration 10,000 90,000 10,000 30,000 30,000 30,000
Ill.meth-2
a)Sale of 10,200 90,000 - 31.920 27,930 19.950
Change
compos. Asset $
Liquidation 10,200
reason
20,200 0 10,000 (1.920) 2.070 10.050
illustration
b) Pay liability 10,000 - 10,000 - - -
Ice Break

Penutup 10,200 0 0 (1.920) 2.070 10.050

c) Close to defisit - - - 1.920 1.120 800
10,200 0 0 0 950 9.250
d) distribute 10.200 0 0 0 950 9.250
e) Balance 0 0 0 0 0 0
 journal
define a) Cash ..................... 10,200
Character Rings Capital 31,920
advantage Scott Capital 27,930
Disadvant.
Terry Capital 19,950
division
Other Asset 90,000
Methods
(To record disposalplant aset and distribute of
loss)
illustration

Ill.meth-2
Change
b) Other liability ................ 10,000
compos.
Liquidation
Cash 10,000
reason
(To record the settlement of liability )
illustration

Ice Break c) Scott Capital................ 1,120

Penutup Terry Capital............... 800
Ringscapital 1920

d) Scott Capital................ 950

Terry Capital............... 9.250
Cash 10,200
 Apanya yang lucu?

define

Character

advantage

Disadvant.

division

Methods

illustration

Ill.meth-2
Change
compos.
Liquidation

reason

illustration

Ice Break

Penutup
 define

Character

advantage

Disadvant.

division

Methods

illustration

Ill.meth-2
Change
compos.
Liquidation

reason

illustration

Ice Break

Penutup