1. Chapter 12 Partnerships Accounting, 22st Edition Warren Reeve Fess
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PowerPoint Presentation by Douglas Cloud Professor Emeritus of Accounting Pepperdine University

2. Setelah mempelajari Bab ini Mahasiswa diharapkan dapat:
Objectives
Menjelaskan Karakteristik perusahaan Perorangan dan Persekutuan
2. Menjelaskan Struktur statement of Partnership Equity
Memahami Akuntansi Partnership yg meliputi:
Forming
Dividing Income
Partnership Dissolution
Liquidating
Setelah mempelajari Bab ini Mahasiswa diharapkan dapat:

3. Alternative Forms of Business Entities
Advantages
Mudah dibentuk
Biaya Pendiriannya murah
A proprietorship is owned by one individual.
Disadvantages
Modal Kecil
Unlimited liability/Kewajiban tak terbatas
Joe’s
Review of Chapter 1

4. Alternative Forms of Business Entities
Advantages
The ability to obtain large amounts of resources by issuing stocks
Limited liability for the owners
A corporation is organized under state or federal statutes as a separate legal entity.
J & M, Inc.
Disadvantages
Double taxation
More complexity and regulations

5. Alternative Forms of Business Entities
A 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.
J & M, Inc.

6. Alternative Forms of Business Entities
A partnership is an association of two or more individuals.
Advantages
Modal lbh besar
Keahlian Manajemennya lbh bagus
Joe and Marty’s

7. Alternative Forms of Business Entities
A partnership is an association of two or more individuals.
Disadvantages
Limited life
Unlimited liability
Co-ownership of partnership property
Mutual agency
Joe and Marty’s

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

9. Alternative Forms of Business Entities
A 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.

10. Limited Liability Corporations
Combines 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

11. Limited Liability Corporations
Unless 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.

12. Comparison of Alternate Entity Characteristics
Ease of Formation
Proprietorship Simple
Corporation Complex
Partnership Simple
LLC Moderate

13. Comparison of Alternate Entity Characteristics
Legal Liability
Proprietorship No limitation
Corporation Limited liability
Partnership No limitation
LLC Limited liability

14. Comparison of Alternate Entity Characteristics
Limitation on Life of Entity
Proprietorship Yes
Corporation No
Partnership Yes
LLC Yes

15. Comparison of Alternate Entity Characteristics
Ease of Raising Capital
Proprietorship Difficult
Corporation Easier
Partnership Moderate
LLC Moderate

16. Equity Reporting for Alternative Entity Forms
Proprietorships
Proprietorships use a capital account to record investments by the owner of the business.
Withdrawals by the owner are recorded in the owner’s drawing account.

17. Statement of Owner’s Equity For the year ended December 31, 2006
Equity Reporting for Alternative Entity Forms
Proprietorships
Greene Landscapes
Statement of Owner’s Equity
For the year ended December 31, 2006
Duncan Greene, capital, Dec. 31, $345,000
Net income $79,000
Less withdrawals 35,000
Increase in owner’s equity ,000
Duncan Greene, capital, Dec. 31, $389,000

18. Equity Reporting for Alternative Entity Forms
Corporations
Investments 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.

19. Equity Reporting for Alternative Entity Forms
Corporations

20. Equity Reporting for Alternative Entity Forms
Partnerships and Limited Liability Corporations
Setoran Modal dan Withdrawal dicatat terpisah antar Partner
Limited liability corporations are similar to a partnership except that each owner is referred to as “member.”

21. Equity Reporting for Alternative Entity Forms
Partnerships

22. Stevens’ Transfer of Assets, Liability, and Equity
Forming a Partnership
Joseph 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
Apr. 1 Cash
Accounts Receivable
Merchandise Inventory
Store Equipment
Office Equipment
Allowance for Doubtful Accounts
Accounts Payable
Joseph Stevens, Capital

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

24. Stevens’ Transfer of Assets, Liability, and Equity
Forming a Partnership
Assume that instead of forming a partnership, the two men formed a limited liability corporation.
Stevens’ Transfer of Assets, Liability, and Equity
Apr. 1 Cash
Accounts Receivable Merchandise Inventory
Store Equipment
Office Equipment
Allowance for Doubtful Accounts
Accounts Payable
Joseph Stevens, Member Equity

25. Apabila diketahui Net Income th berjalan $75,000.
Dividing Income
Services of Partners
Formula 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, Any net income is to be divided equally.
Apabila diketahui Net Income th berjalan $75,000.
J. Stone C. Mills Total
Salary allowance $30,000 $24,000 $54,000
Remaining income 10,500 10,500 21,000
Division of net income $40,500 $34,500 $75,000

26. Dividing Income Services of Partners Dec. 31 Income Summary 75 000 00
Jennifer Stone, Capital
Crystal Mills, Capital

27. Dividing Income LLC Alternative Dec. 31 Income Summary 75 000 00
Jennifer Stone, Member Equity
Crystal Mills, Member Equity

28. Apabila diketahui Net Income th berjalan $75,000.
Dividing Income
Services of Partners
Formula 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 masing2
Sisa Lebih/Kurang dibagi sama rata
Apabila diketahui Net Income th berjalan $75,000.

29. Services of Partners and Investments
Dividing Income
Services of Partners and Investments
J. Stone C. Mills Total
Salary allowance $30,000 $24,000 $54,000
Interest allowance 9,600 7,200 16,800
Remaining income 2,100 2,100 4,200
$80,000 x 12%
$60,000 x 12%
Division of net income $41,700 $33,300 $75,000

30. Dividing Income Services of Partners Dec. 31 Income Summary 75 000 00
Jennifer Stone, Capital
Crystal Mills, Capital

31. Dividing Income LLC Alternative Dec. 31 Income Summary 75 000 00
Jennifer Stone, Member Equity
Crystal Mills, Member Equity

32. Allowances Exceed Net Income
Dividing Income
Allowances Exceed Net Income
Assume the same facts as before except that the net income is only $50,000.
J. Stone C. Mills Total
Salary allowance $30,000 $24,000 $54,000
Interest allowance 9, , ,800
Total $39,600 $31,200 $70,800
Deduct excess equally 10,400 10,400 20,800
Division of net income $29,200 $20,800 $50,000

33. Dividing Income Services of Partners Dec. 31 Income Summary 50 000 00
Jennifer Stone, Capital
Crystal Mills, Capital

34. Dividing Income Allowances Exceed Net Income
Assume the same facts as before except that the net LOSS is $10,000.
J. Stone C. Mills Total
Salary allowance $30,000 $24,000 $54,000
Interest allowance 9, , ,800
Total $39,600 $31,200 $70,800
Deduct excess equally 40,400 40,400 80,800
Division of net income ($800) ($9,200) ($10,000)

35. Dividing Income Services of Partners
Dec. 31 Jennifer Stone, Capital
Crystal Mills, Capital
Income Summary

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

37. Partnership Dissolution
Revaluation of Assets
Partners 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

38. Partnership Dissolution
Revaluation of Assets
June 1 Merchandise Inventory
Donald Lewis, Capital
Gerald Morton, Capital

39. Partnership Dissolution
Admitting a Partner
Masuknya Anggota baru dalam Partnership ada dua cara:
Purchasing 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 perusahaan

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

41. Partnership Dissolution
Purchasing an Interest in a Partnership
June 1 Tom Andrews, Capital
Nathan Bell, Capital
Joe Canter, Capital
For a LLC, members’ equity accounts would have been used rather than capital accounts.

42. Partnership Dissolution
Contributing Assets to a Partnership
Partners 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

43. Partnership Dissolution
Contributing Assets to a Partnership
June 1 Cash
Sharon Nelson, Capital
For a LLC, Sharon Nelson, Member Equity would have been credited.

44. Partnership Dissolution
Partner Bonuses
On 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.

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

46. Partnership Dissolution
Partner Bonuses from New Partner
Equity of Jenkins $20,000
Equity of Kramer 24,000
Diaz’s Contribution 31,000
Total equity after admitting Diaz $75,000
Diaz’s interest (1/3 x $75,000) $25,000
Diaz’s contribution $31,000
Diaz’s equity after admission 25,000
Bonus paid to Jenkins and Kramer $ 6,000

47. Partnership Dissolution
Partner Bonuses
Mar. 1 Cash
Alex Diaz, Capital
Marsha Jenkins, Capital
Helen Kramer, Capital
$6000 ÷ 2

48. Partnership Dissolution
Partner Bonuses
Setelah 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 ¼ Kepemilikan modal partnership. Pembagian laba-rugi antara Cowen and Dodd adalah dengan ratio 2:1

49. Partnership Dissolution
Partner Bonuses to New Partner
Equity of Cowen $ 80,000
Equity of Dodd 40,000
Chua’s Contribution ,000
Total equity after admitting Chua $150,000
Chua’s interest (1/4 x $150,000) $ 37,500
Chua’s contribution $30,000
Chua’s equity after admission 37,500
Bonus paid to Chua $ 7,500

50. Partnership Dissolution
Partner Bonuses
Mar. 1 Cash
Janice Cowen, Capital
Steve Dodd, Capital
Ellen Chua, Capital
2/3 x $7,500
1/3 x $7,500

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

52. Langkah2 proses Likuidasi
Realisasi Non Cash Asset
Pembagian Laba/Rugi Realisasi
Pelunasan Hutang
Pembagian Sisa Kas kepada Partner

53. Liquidating Partnerships
Farley, 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.
Cash $11,000
Noncash Assets 64,000
Liabilities $ 9,000
Jean Farley, Capital 22,000
Brad Greene, Capital 22,000
Alice Hall, Capital 22,000
Total $75,000 $75,000

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

55. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of gain +72, ,000 —
Left side of statement

56. Liquidating Partnerships
Farley Greene Hall
Capital Capital Capital
Balance before realization $22,000 $22,000 $22,000
Sale of assets and division
of gain +4,000 +2,400 +1,600
$8,000 gain x .50
$8,000 gain x .30
$8,000 gain x .20
Right side of statement

57. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of gain +72,000 –64, —
Balance after realization $83,000 $0 $9,000
Left side of statement

58. Liquidating Partnerships
Farley Greene Hall
Capital Capital Capital
Balance before realization $22,000 $22,000 $22,000
Sale of assets and division
of gain +4, , ,600
Balance after realization $26,000 $24,400 $23,600
Right side of statement

59. Liquidating Partnerships
Gain on Realization
The partnership’s liabilities are paid, $9,000.

60. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of gain +72,000 –64, —
Balance after realization $83,000 $ $9,000
Payment of liabilities –9,000 — –9,000
Left side of statement

61. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of gain +72,000 –64, —
Balance after realization $83,000 $ $9,000
Payment of liabilities –9, — –9,000
Balance after payment $74,000 $ $
Left side of statement

62. Liquidating Partnerships
Gain on Realization
The remaining cash, $74,000, is paid to each partner in accordance with the partner’s capital balance.

63. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of gain +72,000 –64, —
Balance after realization $83,000 $ $9,000
Payment of liabilities –9, — –9,000
Balance after payment $74,000 $ $
Partners’ cash distributed –74, — —
Final balances $ $ $
Left side of statement

64. Liquidating Partnerships
Balance before realization $22,000 $22,000 $22,000
Farley Greene Hall
Capital Capital Capital
Sale of assets and division
of gain +4, , ,600
Balance after realization $26,000 $24,400 $23,600
Payment of liabilities — — —
Balance after payment $26,000 $24,400 $23,600
Partners’ cash distributed –26,000 –24,400 –23,600
Final balances $ $ $
Right side of statement

65. Liquidating Partnerships
Sale of Assets
Apr. 30 Cash
Noncash Assets
Gain on Realization

66. Liquidating Partnerships
Division of Gain
Apr. 30 Gain on Realization
Jean Farley, Capital
Brad Greene, Capital
Alice Hall, Capital

67. Liquidating Partnerships
Payment of Liabilities
Apr. 30 Liabilities
Cash

68. Liquidating Partnerships
Distribution of Cash to Partners
Apr. 30 Jean Farley, Capital
Brad Greene, Capital
Alice Hall, Capital
Cash

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

70. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of loss +44,000 –64,000 —
Left side of statement

71. Liquidating Partnerships
Farley Greene Hall
Capital Capital Capital
Balance before realization $22,000 $22,000 $22,000
Sale of assets and division
of loss –10,000 –6,000 –4,000
$20,000 loss x .50
$20,000 loss x .30
$20,000 loss x .20
Right side of statement

72. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of loss +44,000 –64, —
Balance after realization $55,000 $0 $9,000
Left side of statement

73. Liquidating Partnerships
Farley Greene Hall
Capital Capital Capital
Balance before realization $22,000 $22,000 $22,000
Sale of assets and division
of loss –10,000 –6,000 –4,000
Balance after realization $12,000 $16,000 $18,000
Right side of statement

74. Liquidating Partnerships
Loss on Realization
The liabilities of the partnership are paid, $9,000.

75. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of loss +44,000 –64, —
Balance after realization $55,000 $ $9,000
Payment of liabilities –9,000 — –9,000
Left side of statement

76. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of loss +44,000 –64, —
Balance after realization $55,000 $ $9,000
Payment of liabilities –9, — –9,000
Balance after payment $46,000 $ $
Left side of statement

77. Liquidating Partnerships
Loss on Realization
The remaining cash, $46,000, is paid to each partner in accordance with the partner’s capital balance.

78. Liquidating Partnerships
Noncash
Cash Assets Liabilities
Balance before realization $11,000 $64,000 $9,000
Sale of assets and division
of loss +44,000 –64, —
Balance after realization $55,000 $ $9,000
Payment of liabilities –9, — –9,000
Balance after payment $46,000 $ $
Partners’ cash distributed –46, — —
Final balances $ $ $
Left side of statement

79. Liquidating Partnerships
Balance before realization $22,000 $22,000 $22,000
Farley Greene Hall
Capital Capital Capital
Sale of assets and division
of loss –10,000 –6,000 –4,000
Balance after realization $12,000 $16,000 $18,000
Payment of liabilities — — —
Balance after payment $12,000 $16,000 $18,000
Partners’ cash distributed –12,000 –16,000 –18,000
Final balances $ $ $
Right side of statement

80. Liquidating Partnerships
Sale of Assets
Apr. 30 Cash
Loss on Realization
Noncash Assets

81. Liquidating Partnerships
Division of Loss
Apr. 30 Jean Farley, Capital
Brad Greene, Capital
Alice Hall, Capital
Loss on Realization

82. Liquidating Partnerships
Payment of Liabilities
Apr. 30 Liabilities
Cash

83. Liquidating Partnerships
Distribution to Partners
Apr. 30 Jean Farley, Capital
Brad Greene, Capital
Alice Hall, Capital
Cash

84. Lifecycle of a Business
Business Stage
Principal Advantage
Form easily: Jacobi forms a business by obtaining a local business license and opening a bank account.
Della’s Delights, Proprietorship
Jeff Jacobi, Proprietor
Della’s Delights, Partnership
Jacobi and Lange, Partners
Expand capital and expertise: Jacobi admits a new partner that contributes capital and expertise.
Continued

85. Lifecycle of a Business
Business Stage
Principal Advantage
Della’s Delights, LLC
Limit legal liability: The partnership is changed to an LLC to limit legal liability of owners.
Della’s Delights, Inc.
Simplify raising capital: The LLC is changed to a corporation to raise capital from the public.
Continued

86. Lifecycle of a Business
Business Stage
Principal Advantage
Della’s Delights, Inc. a division of International Foods, Inc.
Provide exit: The company is sold for cash.

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

88. `
Chapter 13
The End