what is partnership in accounting??

Question

ive been looking on the internet for a while, but i cant seem to find what im looking for..
what is partnership? as in in accounting??
what are the kinds of partnership?
what are the kinds of partners?

any help will be appreciated..thanks..

im talking about general, special/limited kinds of partnership, are there any other types??

im talking about the ostensible, secret dormant, nominal kinds of partners..are there any other types??

Answer 1

I'm a little confused by your question.

Many accounting firms are partnerships. In other words, the firm is owned by the principal employees. That way each accountant can share the costs. Some things cost money whether you have one or twenty partners.

Its a setup similar to law firms. Generally there is only one type of partner, but that can vary.

Answer 2

Each partner must use a Capital and a withdrawals account to record changes in their financial positions. They must allocate for division of profits and/or losses amongst themselves.

There are three methods of dividing earnings. They can be divided on a stated fractional basis, divided according to the ratio of capital investment, or they can be divided through the use of salary and interest allowances.

Answer 3

For you to be guided in debiting and crediting an account. ASSET-(+)DEBIT* (-)CREDIT* LIABILITY-(+)CREDIT* -(-)DEBIT* OWNERS EQUITY CAPITAL-(+)CREDIT* (-)DEBIT WITHDRAWAL-(+)DEBIT* (-)CREDIT REVENUE/INCOME-(+)CREDIT (-)DEBIT EXPENSE -(+)DEBIT (-)CREDIT So , therefore the ruling states that when withdrawal increases it should be debited and when it decreases it should be credited. When expense increases it should be debited and credited when it decreases.