Chapter 12PartnershipsAccounting, 22st EditionWarren Reeve FessPowerPoint Presentation by Douglas Cloud Professor Emeritus of Accounting Pepperdine University

Menjelaskan Karakteristik perusahaan Perorangan dan Persekutuan2.Menjelaskan Struktur statement of Partnership EquityMemahami Akuntansi Partnership yg meliputi:FormingDividing IncomePartnership DissolutionLiquidating

ObjectivesSetelah mempelajari Bab ini Mahasiswa diharapkan dapat:

Alternative Forms of Business EntitiesAdvantagesMudah dibentukBiaya Pendiriannya murahDisadvantagesModal KecilUnlimited liability/Kewajiban tak terbatasJoes Review of Chapter 1A proprietorship is owned by one individual.

Alternative Forms of Business EntitiesA corporation is organized under state or federal statutes as a separate legal entity.AdvantagesThe ability to obtain large amounts of resources by issuing stocksLimited liability for the ownersDisadvantagesDouble taxationMore complexity and regulations

Alternative Forms of Business EntitiesA business may organize as an S Corporation. The IRS allows income to pass through the S Corporation to the individual stockholder without the corporation having to pay tax on the income.

Alternative Forms of Business EntitiesA partnership is an association of two or more individuals. AdvantagesModal lbh besarKeahlian Manajemennya lbh bagus

Alternative Forms of Business EntitiesDisadvantagesLimited lifeUnlimited liabilityCo-ownership of partnership propertyMutual agencyA partnership is an association of two or more individuals.

Alternative Forms of Business EntitiesA partnership is created by a contract, known as the partnership agreement or articles of partnership.

Alternative Forms of Business EntitiesA variant of the regular partnership is a limited partnership.This form of partnership allows partners that are not involved in the operations of the partnership to retain limited liability.

Limited Liability CorporationsCombines the advantages of the corporate and partnership forms.Owners are termed members rather than partners.Members must create an operating agreement.LLC may elect to be treated as a partnership for tax purposes.Continued

Limited Liability CorporationsUnless specified in the operating agreement, LLCs have a limited life.Members may elect operating the LLC as a member managed entity.LLC provides limited liability for the members.LLCs must file articles of organization with state governmental authorities.

Comparison of Alternate Entity CharacteristicsEase of Formation

Comparison of Alternate Entity CharacteristicsLegal Liability

Comparison of Alternate Entity CharacteristicsLimitation on Life of Entity

Comparison of Alternate Entity CharacteristicsEase of Raising Capital

Equity Reporting for Alternative Entity FormsProprietorshipsProprietorships use a capital account to record investments by the owner of the business.Withdrawals by the owner are recorded in the owners drawing account.

Equity Reporting for Alternative Entity FormsProprietorshipsGreene LandscapesStatement of Owners EquityFor the year ended December 31, 2006Duncan Greene, capital, Dec. 31, 2005$345,000Net income$79,000Less withdrawals 35,000Increase in owners equity 44,000Duncan Greene, capital, Dec. 31, 2006$389,000

Equity Reporting for Alternative Entity FormsCorporationsInvestments by stockholders in the business use capital stock accounts, such as Common Stock and Preferred Stock.Dividends to owners (stockholders) are recorded by a debit to Retained Earnings.

Equity Reporting for Alternative Entity FormsCorporations

Equity Reporting for Alternative Entity FormsPartnerships and Limited Liability CorporationsSetoran Modal dan Withdrawal dicatat terpisah antar PartnerLimited liability corporations are similar to a partnership except that each owner is referred to as member.

Equity Reporting for Alternative Entity FormsPartnerships

Forming a PartnershipJoseph Stevens and Earl Foster agree to combine their hardware businesses in a partnership. They agree that the partnership is to assume the liabilities of the separate businesses.Stevens Transfer of Assets, Liability, and Equity

Forming a PartnershipA similar entry would be made for the assets, liabilities, and equity of Earl Foster.

Forming a PartnershipAssume that instead of forming a partnership, the two men formed a limited liability corporation. Stevens Transfer of Assets, Liability, and Equity

Dividing IncomeServices of PartnersFormula pembagian Laba-rugi Partnership dari Stone dan Mills adalah sbb: 1. Annual salary allowance of $30,000 to Tn A and Tn B is to receive $24,000. 2. Any net income is to be divided equally. Apabila diketahui Net Income th berjalan $75,000. J. Stone C. Mills TotalSalary allowance$30,000$24,000$54,000Remaining income10,50010,50021,000

Dividing IncomeServices of Partners

Dividing IncomeLLC Alternative

Dividing IncomeServices of PartnersFormula pembagian Laba-rugi Partnership dari Tn Stone dan Mills adalah sbb: Annual salary allowance of $30,000 Tn Stone and Tn Mills to receive $24,000. Diberikan bunga 12% atas Saldo Modal masing2Sisa Lebih/Kurang dibagi sama rata Apabila diketahui Net Income th berjalan $75,000.

Dividing IncomeServices of Partners and Investments J. Stone C. Mills TotalSalary allowance$30,000$24,000$54,000Interest allowance9,6007,20016,800$80,000 x 12%$60,000 x 12%Remaining income2,1002,1004,200

Dividing IncomeServices of Partners

Dividing IncomeLLC Alternative

Dividing IncomeAllowances Exceed Net IncomeAssume the same facts as before except that the net income is only $50,000. J. Stone C. Mills TotalSalary allowance$30,000$24,000$54,000Interest allowance 9,600 7,200 16,800 Total$39,600$31,200$70,800Deduct excess equally10,40010,40020,800

Dividing IncomeServices of Partners

Dividing IncomeAllowances Exceed Net IncomeAssume the same facts as before except that the net LOSS is $10,000. J. Stone C. Mills TotalSalary allowance$30,000$24,000$54,000Interest allowance 9,600 7,200 16,800 Total$39,600$31,200$70,800Deduct excess equally40,40040,40080,800

Dividing IncomeServices of PartnersIncome Summary 10 000

Partnership DissolutionDissolution terjadi apabila ada perubahan anggota Partners. Masuknya partner baru atau keluarnya partner lama Sebelum dissolution perusahaan harus melakukan Revaluasi atas assetnyaRevaluasi adalah menilai kembali seluruh assetnya berdasar nilai wajar pada saat itu

Partnership DissolutionRevaluation of AssetsPartners Donald Lewis and Gerald Morton mempunyai saldo modal masing-masing $35,000 and $25,000. Hasil revaluasi terdapat kenaikan nilai atas Merchandise Inventory dari $14,000 menjadi $17,000. Laba-Rugi dibagi sama rata

Partnership DissolutionRevaluation of Assets

Partnership DissolutionAdmitting a PartnerPurchasing an interest from one or more of the current partners. Membeli kepemilikan modal dari partner yang lama.2.Contributing assets to the partnership. Menyetor asset ke perusahaanMasuknya Anggota baru dalam Partnership ada dua cara:

Partnership DissolutionPurchasing an Interest in a PartnershipPartners Andrews and Bell mempunyai saldo modal masing2 $50,000. tgl 1 June Joe bergabung dengan membeli 1/5 kepemilikan Modal masing2 partner lama.

Partnership DissolutionPurchasing an Interest in a PartnershipFor a LLC, members equity accounts would have been used rather than capital accounts.

Partnership DissolutionContributing Assets to a PartnershipPartners Donald Lewis and Gerald Morton mempunyai saldo modal masing2 $35,000 and $25,000. On June 1, Sharon Nelson bergabung ke partnership dengan menyetor kas $20,000

Partnership DissolutionContributing Assets to a PartnershipFor a LLC, Sharon Nelson, Member Equity would have been credited.

Partnership DissolutionPartner BonusesOn March 1, partnership milik Marsha Jenkins dan Helen Kramer admit Alex Diaz as a new partner. Setelah revaluasi saldo modal dari masing2 partner adalah $20,000 and $24,000.

Partnership DissolutionPartner BonusesJenkins and Kramer setuju Diaz masuk menjadi Partner baru dengan menyetor Cash $31,000. Diaz akan memperoleh 1/3 kepemilikan Modal partnership yang baru.

Partnership DissolutionPartner Bonuses from New PartnerEquity of Jenkins$20,000Equity of Kramer24,000Diazs Contribution 31,000Total equity after admitting Diaz$75,000Diazs interest (1/3 x $75,000)$25,000Diazs contribution$31,000Diazs equity after admission 25,000Bonus paid to Jenkins and Kramer$ 6,000

Partnership DissolutionPartner Bonuses$6000 2

Partnership DissolutionPartner BonusesSetelah revaluasi saldo modal Janice Cowen adl $80,000 dan Steve Dodd sebesar $40,000. Ellen Chua masuk menjadi partner baru dengan menyetor kas $30,000 untuk memperoleh Kepemilikan modal partnership. Pembagian laba-rugi antara Cowen and Dodd adalah dengan ratio 2:1

Partnership DissolutionPartner Bonuses to New PartnerEquity of Cowen$ 80,000Equity of Dodd40,000Chuas Contribution 30,000Total equity after admitting Chua$150,000Chuas interest (1/4 x $150,000)$ 37,500Chuas contribution$30,000Chuas equity after admission 37,500Bonus paid to Chua$ 7,500

Partnership DissolutionPartner Bonuses1/3 x $7,5002/3 x $7,500

Liquidating PartnershipsWhen a partnership goes out of business, the winding-up process is called the liquidation of a partnership.

Langkah2 proses LikuidasiRealisasi Non Cash AssetPembagian Laba/Rugi RealisasiPelunasan HutangPembagian Sisa Kas kepada Partner

Liquidating PartnershipsFarley, Greene, and Hall share income and losses in a ratio of 5:3:2. On April 9, after discontinuing operations, the firm had the following trial balance.

Liquidating PartnershipsBetween April 10 and April 30, 2006, Farley, Greene, and Hall sell all noncash assets for $72,000.Gain on Realization

Liquidating PartnershipsBalance before realization$11,000$64,000$9,000Left side of statement Noncash Cash Assets LiabilitiesSale of assets and divisionof gain+72,000-64,000

Liquidating PartnershipsBalance before realization$22,000$22,000$22,000Right side of statement Farley Greene Hall Capital Capital CapitalSale of assets and divisionof gain+4,000+2,400+1,600$8,000 gain x .50$8,000 gain x .30$8,000 gain x .20

Liquidating PartnershipsBalance before realization$11,000$64,000$9,000Left side of statement Noncash Cash Assets LiabilitiesSale of assets and divisionof gain+72,00064,000 Balance after realization$83,000$0$9,000

Liquidating PartnershipsBalance before realization$22,000$22,000$22,000Right side of statement Farley Greene Hall Capital Capital CapitalSale of assets and divisionof gain +4,000 +2,400 +1,600Balance after realization$26,000$24,400$23,600

Liquidating PartnershipsThe partnerships liabilities are paid, $9,000.Gain on Realization

Liquidating PartnershipsLeft side of statement Noncash Cash Assets LiabilitiesPayment of liabilities9,0009,000

Liquidating PartnershipsLeft side of statement

Liquidating PartnershipsThe remaining cash, $74,000, is paid to each partner in accordance with the partners capital balance.Gain on Realization

Liquidating PartnershipsLeft side of statementPayment of liabilities 9,000 9,000Balance after payment $74,000$ 0$ 0Partners cash distributed74,000 Final balances$ 0$ 0$ 0

Liquidating PartnershipsRight side of statementPartners cash distributed26,00024,40023,600Final balances$ 0$ 0$ 0

Liquidating PartnershipsSale of Assets

Liquidating PartnershipsDivision of Gain

Liquidating PartnershipsPayment of Liabilities

Liquidating PartnershipsDistribution of Cash to Partners

Liquidating PartnershipsBetween April 10 and April 30, 2006, Farley, Greene, and Hall sell all noncash assets for $44,000.Loss on Realization

Liquidating PartnershipsBalance before realization$11,000$64,000$9,000Left side of statement Noncash Cash Assets LiabilitiesSale of assets and divisionof loss+44,00064,000

Liquidating PartnershipsBalance before realization$22,000$22,000$22,000Right side of statement Farley Greene Hall Capital Capital CapitalSale of assets and divisionof loss10,0006,0004,000$20,000 loss x .50$20,000 loss x .30$20,000 loss x .20

Liquidating PartnershipsBalance before realization$11,000$64,000$9,000Left side of statement Noncash Cash Assets LiabilitiesSale of assets and divisionof loss+44,00064,000 Balance after realization$55,000$0$9,000

Liquidating PartnershipsBalance before realization$22,000$22,000$22,000Right side of statement Farley Greene Hall Capital Capital CapitalSale of assets and divisionof loss 10,000 6,000 4,000Balance after realization$12,000$16,000$18,000

Liquidating PartnershipsThe liabilities of the partnership are paid, $9,000.Loss on Realization

Liquidating PartnershipsLeft side of statement Noncash Cash Assets LiabilitiesPayment of liabilities9,0009,000

Liquidating PartnershipsLeft side of statement

Liquidating PartnershipsThe remaining cash, $46,000, is paid to each partner in accordance with the partners capital balance.Loss on Realization

Liquidating PartnershipsLeft side of statementPayment of liabilities 9,000 9,000Balance after payment $46,000$ 0$ 0Partners cash distributed46,000 Final balances$ 0$ 0$ 0

Liquidating PartnershipsRight side of statementPartners cash distributed12,00016,00018,000Final balances$ 0$ 0$ 0

Liquidating PartnershipsSale of Assets

Liquidating PartnershipsDivision of LossBrad Greene, Capital6 000 00Alice Hall, Capital4 000 00Loss on Realization20 000 00Apr. 30Jean Farley, Capital10 000 00

Liquidating PartnershipsPayment of Liabilities

Liquidating PartnershipsDistribution to Partners

Lifecycle of a BusinessBusiness StagePrincipal AdvantageDellas Delights, ProprietorshipJeff Jacobi, ProprietorForm easily: Jacobi forms a business by obtaining a local business license and opening a bank account.Dellas Delights, PartnershipJacobi and Lange, PartnersExpand capital and expertise: Jacobi admits a new partner that contributes capital and expertise.Continued

Lifecycle of a BusinessBusiness StagePrincipal AdvantageDellas Delights, LLCLimit legal liability: The partnership is changed to an LLC to limit legal liability of owners.Dellas Delights, Inc.Simplify raising capital: The LLC is changed to a corporation to raise capital from the public.Continued

Lifecycle of a BusinessBusiness StagePrincipal AdvantageDellas Delights, Inc. a division of International Foods, Inc.Provide exit: The company is sold for cash.

A venture capitalist is an individual or firm that provides equity financing for a new company.

The EndChapter 13`