INTRODUCTION AND ANALYSIS TO PARTNERSHIP ACCOUNTING

By

JUGWU ABEL O.

Presented To

Department of Accountancy

TABLE OF CONTENT

COVER PAGE I

TITLE PAGE II

CERIFICATION III

DEDICATION IV

ACKNOWLEDGEMENT V

CONTENT VI

CHAPTER ONE

1.0 BACKGROUND OF STUDY 1

1.1 STATEMENT OF PROBLEM 2

1.2 PURPOSE OF STUDY 3

1.3 SIGNIFICANCE OF STUDY 3

1.4 SCOPE AND LIMITATIONS OF THE STUDY 4

1.5 DEFINATIONS OF TERMS 5

CHAPTER TWO

2.0 LITERATURE REVIEW 7

2.1 HISTORICAL BACKGROUND OF PARTNERSHIPACCOUNTING 8

2.2 DEFINITIONS OF PARTNERSHIP 9

2.3 TYPES OF PARTNERSHIP 11

2.4 PARTNERSHIP AGREEMENT 13

2.5 CONTENT OF PARTNERSHIP

ACCOUNTING 17

2.6 ADVANTAGES AND DISADVANTAGES OF PARTNERSHIP 25

CHAPTER THREE

3.0 SUMMAKRY OF FINDINGS 28

3.1 CONCLUSION 29

3.2 RECOMMENDATION 30

3.3 BIBLIOGRAPHY 31

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Partnership was defined in the partnership Act of 1890. This shows that partnership started in the olden days during the time of our fore fathers. This partnership Act of 1890 has covered what partnership is all about and what it means to form a partnership. According to this Act, It can exist in the following ways.

1. Where two or more persons decide to create a business. That is non of them processes an existing business.

2. When an existing business decide to team up with one another.

3. Where two persons, each caring on separate business as sole traders, decides to amalgamate their respective concerns and form a partnership.

In Nigeria, past records shown that the first law that guided partnership is in section 454 of the companies Act of 1948. latter s. 119 of the company ;Act of 1967 was introduced.

1.2 STATEMENT OF PROBLEM

1. The problems that inform and create the necessity for studying the topic are

2. Both past and current records shown that partnership business in Nigeria is not doing well

2 It is to know the state of any partnership business when a partner is declared bankrupt

3 There are many types of partnership business out of them one is the best

4 There are many method used in partnership accounting which one is the best.

1.4 SIGNIFICANCE OF THE STUDY

It is expected that this study will be of immense benefit to the society and government in general. By highlighting the problem and making recommendation, the study will improve the standard of living in the society.

It will benefit the government in the sense that if a partnership ;business is doing well, the profit will be high and the higher the profit the higher the tax paid to the government.

PURPOSE OF STUDY

i. To identify the reasons while most partnership business in Nigeria is not doing well

ii. To identify the state of partnership business when a partner is declared bankruptcy.

iii. To identify the type of partnership that can be formed

iv. To identify the best method of account to be adopted by partnership business.

SCOPE AND LIMITTION OF THE STUDY

The study is limited to theoretical aspects of partnership and also the capital account appropriation account, capital account of partners, partnership current account. It excludes account of admission of partners, retirement of partners account, death of partners account, dissolution of partnership account, Amalgamation of partnership, sale of partnership account.

1.5 DEFINATION OF TERMS

Partnership liquidation; The termination of a business entity by selling its assets land distributing the resulting cash to the creditors ;and owners.

Partnership: An association of two or more people; with common interest to carry out a business as co-owners with the aim of making profit.

Purpose of an interest; A business transaction involving the ownership interest between an existing partners and new partners.

UNLIMITED LIABILITY : The legal obligation that make each partners in the partnership to be responsible for the partnership business.

DISSOLUTION OF PARTNERSHIP ; This is means bringing together partners business to form one business.

CONGLOMERATION; A large corporation of partnership formed by joining together different partnership firm together.

BANKRUPT ; This is when a partner is owning the bank