The Best Book for Partnership and Corporation Accounting: Win Ballada's 2020 Edition | PDF Available
Partnership and Corporation Accounting by Win Ballada: A Comprehensive Guide
If you are a business owner, a student, or a professional who wants to learn more about partnership and corporation accounting, you might be interested in a book that covers this topic in a clear, concise, and updated way. Partnership and Corporation Accounting by Win Ballada is a book that provides conceptual discussions, practical examples, and lots of exercises on the accounting principles and practices for partnerships and corporations in the Philippines.
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In this article, we will give you an overview of what partnership and corporation accounting is, why it is important, and how you can learn it from Partnership and Corporation Accounting by Win Ballada. We will also show you how to access this book online in PDF format.
What is partnership and corporation accounting?
Partnership and corporation accounting are two branches of accounting that deal with the financial transactions, records, reports, and analysis of business entities that are organized as partnerships or corporations.
Definition and characteristics of partnership accounting
A partnership is a business entity that is formed by two or more persons who agree to contribute money, property, or industry to a common fund with the intention of dividing the profits among themselves. Partnerships are governed by the Civil Code of the Philippines and the Revised Corporation Code of the Philippines.
Some of the characteristics of a partnership are:
Mutual contribution: Partners contribute assets or services to the partnership in exchange for a share in the profits or losses.
Mutual agency: Partners have the power to bind the partnership by their acts within the scope of their authority.
Limited life: Partnerships have a definite or indefinite term of existence, which may be affected by the death, withdrawal, or insolvency of any partner.
Unlimited liability: Partners are personally liable for the debts and obligations of the partnership to the extent of their personal assets.
Income taxes: Partnerships are not subject to income tax as a separate entity. Instead, partners report their share of income or loss from the partnership on their individual income tax returns.
Partners' equity accounts: Partnerships maintain separate accounts for each partner's capital, drawings, and loans.
Partnership accounting involves recording and reporting the transactions related to the formation, operation, dissolution, and liquidation of partnerships. Some of the topics covered in partnership accounting are:
Valuation of investments by partners
Distribution of profits or losses among partners
Financial reporting for partnerships
Changes in partnership composition
Admission and withdrawal of partners
Retirement or death of partners
Dissolution and liquidation of partnerships
Definition and characteristics of corporation accounting
A corporation is a business entity that is created by law as an artificial being with a distinct personality, separate from its owners. Corporations are governed by the Revised Corporation Code of the Philippines and other special laws.
Some of the characteristics of a corporation are:
Separate legal entity: Corporations have the power to sue and be sued, to own and dispose of property, and to enter into contracts in their own name.
Number of persons: Corporations can be formed by one or more persons, who are called stockholders or shareholders. The minimum number of incorporators is five, except for one person corporations.
Juridical personality: Corporations acquire juridical personality from the date of issuance of their certificate of incorporation by the Securities and Exchange Commission (SEC).
Management: Corporations are managed by a board of directors, who are elected by the stockholders. The board of directors appoints the officers, such as the president, treasurer, and secretary, who execute the policies and decisions of the board.
Extent of liability: Stockholders are liable only to the extent of their subscription or investment in the corporation. They are not personally liable for the debts and obligations of the corporation.
Right of succession: Corporations have perpetual existence, unless otherwise provided by law or by their articles of incorporation. They are not affected by the death, withdrawal, or insolvency of any stockholder.
Terms of existence: Corporations have a term of existence that is specified in their articles of incorporation, which may be extended or shortened by amendment.
Corporation accounting involves recording and reporting the transactions related to the formation, operation, dissolution, and liquidation of corporations. Some of the topics covered in corporation accounting are:
Issuance of shares of stock
Accounting for treasury stock
Dividends and stock splits
Retained earnings and appropriations
Financial reporting for corporations
Changes in capital structure
Bonds payable and long-term notes payable
Leases and lease accounting
Pensions and postretirement benefits
Income taxes and deferred tax assets and liabilities
Dissolution and liquidation of corporations
Why is partnership and corporation accounting important?
Partnership and corporation accounting are important for various reasons, depending on the perspective of the users or stakeholders. Here are some of the benefits of partnership and corporation accounting for different groups:
Benefits of partnership and corporation accounting for business owners
Business owners who choose to organize their businesses as partnerships or corporations need to understand the accounting implications of their decision. Partnership and corporation accounting can help them:
Evaluate the advantages and disadvantages of different forms of business organization
Determine the appropriate valuation and allocation of assets, liabilities, and equity among partners or stockholders
Establish a fair and equitable plan for dividing profits or losses among partners or distributing dividends among stockholders
Prepare accurate and reliable financial statements that reflect the financial position, performance, and cash flows of their businesses
Comply with the legal and regulatory requirements for partnerships or corporations in terms of registration, taxation, disclosure, and reporting
Analyze the financial performance and profitability of their businesses using financial ratios and other tools
Plan for future growth or expansion by issuing new shares of stock, borrowing funds, or acquiring other businesses
Manage changes in partnership or corporation composition due to admission or withdrawal of partners, retirement or death of partners or stockholders, mergers or consolidations, or reorganizations
Dissolve or liquidate their businesses in an orderly manner when necessary
Benefits of partnership and corporation accounting for students and professionals
Students who are pursuing a degree in accounting or business administration need to learn partnership and corporation accounting as part of their curriculum. Professionals who are working in accounting firms, auditing firms, tax firms, consulting firms, or other related fields need to apply partnership and corporation accounting in their practice. Partnership and corporation accounting can help them:
Gain a solid foundation in the accounting principles and practices for partnerships and corporations in accordance with the Philippine Financial Reporting Standards (PFRS) and other relevant standards
Develop their analytical, critical thinking, problem-solving, and decision-making skills by solving various exercises and cases involving partnership and corporation accounting scenarios
Enhance their communication, presentation, and interpersonal skills by preparing clear, concise, and coherent reports and explanations on partnership and corporation accounting matters
Prepare for professional examinations such as the Certified Public Accountant (CPA) licensure exam or other certification exams that require knowledge and skills in partnership and corporation accounting
Update their knowledge and skills in partnership and corporation accounting by keeping abreast with the latest developments, trends, issues, 71b2f0854b