1 Partnership. Tutor: Marie O’Callaghan . Partnerships. Professionals such as doctors , lawyers ,dentists, vets, accountants are not allowed to form companies.
Tutor: Marie O’Callaghan
Written partnership agreement is crucial to set out:
Written Partnership agreement overrides the terms of the act
1 ABC Opening credit balances2 B introduces additional capital3 C withdraws capital4 ABC Capital upward adjustment for recognition of goodwill and positive re-valuation of assets
Interest on Credit balance – interest on investment held in the current account
Interest on Capital – interest earned on original investment
Loan Interest – interest due (not yet paid) for a loan given to the partnership
Share Profits – divide of profit
Salary – reward for taking extra responsibility or work
Capital – partner introduced more capital to the business.