Accounting 30 - Module 3

114 Pages·1991·7.8 MB·English

by  Alberta. Alberta Education. Alberta Distance Learning Centre

si -2
UniversityofAlbertaLibrar
|
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0 1620 3450129 4
JAN 2 71992
Partnerships
and Corporations
Module 3
Learning Facilitator's Manual
Distance
Learning
/dlberra
: EDUCATION
Note
ThisAccountingLearningFacilitator'sManual containsanswerstoteacher-assessedassignmentsandthe
final test; therefore,it shouldbekeptsecurebytheteacher. Studentsshouldnothaveaccessto these
assignmentsorthefinal testuntiltheyareassignedinasupervisedsituation. Theanswersshouldbestored
securely bythe teacheratalltimes.
Accounting30
Learning Facilitator's Manual
Module3
PartnershipsandCorporations
Alberta DistanceLearningCentre
ISBN No. 0-7741-0349-3
ALLRIGHTS RESERVED
Copyright•1992,theCrowninRightofAlberta,asrepresentedbytheMinisterofEducation,AlbertaEducation,11160JasperAvenue,
Edmonton,Alberta,T5K0L2.
Allrightsreserved. AdditionalcopiesmaybeobtainedfromtheLearningResourcesDistributingCentre.
Nopartofthiscoursewaremaybereproducedinanyformincludingphotocopying(unlessotherwiseindicated)withoutthewritten
permissionofAlbertaEducation.
Everyefforthasbeenmadebothtoprovideproperacknowledgementoftheoriginalsourceandtocomplywithcopyrightlaw. Ifcases
areidentifiedwherethishasnotbeendone,pleasenotifyAlbertaEducationsoappropriatecorrectiveactioncanbetaken.
Module3
Module 3 Overview
InAccounting 10and20, studentswereinvolvedinstudyingthesoleproprietorshipformofbusiness
ownership. Inthismodule,thestudentswillbeinvolvedinlearningpartnershipandcorporation
accountingtheoryrelatedtotheformationofthesebusinessentities. Theywillalsolearnhowto
journalizetheresultingtransactions.
Studentswillalsolearnaboutthedifferenttypesofownership, andtheywillbeabletocompareand
contrastworksheetsandfinancialstatements.
Partnership
-Formation
-PartnershipAccounting
Business
Ownership
Corporation
-Formation
-CorporationAccounting
Evaluation
Thestudent'smarkinthismodulewillbedeterminedbytheworkintheAssignmentBooklet. All
assignmentsmustbecompleted. Inthismodulethestudentisexpectedtocompletetwosection
assignments. Thesuggestedassignmentbreakdownisasfollows:
Section 1 Assignment 50%
Section2Assignment 50%
Total 100%
Accounting30 1 LearningFacilitator'sManual
Module3
Possible Classroom Openers
• Inviteguestspeakerstoclasstoexplainwhytheystartedapartnership.
• Inviteguestspeakers (financialconsultants)toexplainwhypeopleinvesttheirmoneyinstocksof
acorporation.
• Discussthemeritsofbeginningapartnershipratherthanasoleproprietorship.
• Indicatevariousagenciesthatprovidemoneyforstudentswhomaywishtobeginapartnership
duringtheirsummervacations.
Section 1: Setting Up a Partnership
Thebasicgoalsofthissectionaretoensurethatstudents
• understandtheneedforandpurposeofapartnership
• knowthebenefitsandproblemsofapartnership
• understandthebasicpartnershipagreement
• learnhowtojournalizetheopeningentry,goodwill, andtheadmissionofanewpartner
PossibleActivities
• Contactapartnershipinthelocalcommunityandhaveapartnervisittheclasstoexplainwhythe
businessisorganizedasapartnership.
• HavestudentsresearchthePartnershipAct
• Usetheoverheadtoexplainthelegalimplications andfinancialaspectsofthepartnership.
• Demonstratethepreparationoftheopeningentryforapartnership.
• Explaintheintangibleassetofgoodwill.
Accounting30 2 LearningFacilitator'sManual
Module3
Section 1 Activity1
UsingtheformprovideddrawupacontractonJuly 10, 19xx,withthefollowingprovisions:
Companyname CandlesforYou
:
Location: TheMall
Length: fiveyears
Partners: D.O. WellfromCalgary,Alberta, andR. Poohnfrom Cochrane,Alberta
Responsibilities: D.O.Well-accountingandmarketing
R.Poohn-production
Chequesigning: Bothpartnersmustsignallcheques.
Divisionofprofits
andlosses: Thiswillbehandledonaseparateagreement.
Partnerdisability: Ifoneofthepartnersisdisabledduetopoorhealth,theotherpartnerwillhire
stafftoreplacethesaidpartner,withallrelatedcostscomingfromthedisabled
partner'sshareoftheprofitsorlosses.
Deathofapartner: Hiesurvivingpartnermaybuy,atapricedeterminedbyanarbitratorthe
interestofthedeceasedpartner.
Earlytermination: Ifonepartnerwishestoterminatethebusinessrelationship,thatpartnermust
makeanoffertobuyoutthesecondpartner. Thesecondpartnercanaccept
thatoffer,orusethesametermstobuyoutthefirstpartner.
MutualDissolution: Thegenerallyacceptedaccountingpracticesforliquidatingabusinesswillbe
used.
Accounting30 LearningFacilitator'sManual
Module3
PartnershipAgreement
Thiscontractismadeandsignedonthe 10th dayof July intheyear
19xx
.
1. Thenameofthebusinesswillbe CandlesforYou andistobe
locatedat TheMall .
2. Thepartnersinthebusinesswillbe
R.Poohn Cochrane,Alberta
(name) (address)
and
P.O. Well Calgary,Alberta
(address)
(name)
whoagreetoenterintosaidbusinessforaperiodof fiveyears
3. Theresponsibilitiesofthepartnerswillbeasfollows:
R.Poohnwillbeprimarilyresponsibleforproducingthecandles.
P.O.Wellwillbeprimarilyresponsibleformarketingandaccounting.
4. Anychequesissuedmustbesignedby bothpartners.
5. Divisionofallprofits andlosses,paymentofsalaries, andthematterof
drawingswillbe handledinaseparateagreement.
Accounting30 4 LearningFacilitator'sManual
Module3
Page2
6. Ifoneofthepartnersbecomesdisabled, staffwillbehiredtoreplacethe
saidpartner,withcostscomingoutofthesaidpartner'sshareofthe
profits.
7/. uponmeaeatnorwiinarawaioroneoiinepanners, triercrriuiriing
partnerhastherighttobuythesaidpartneroutatanarbitratedprice.
8. Whenthebusinessisdissolvedbymutualagreement,themethodof
liquidationwillfollow generallyacceptedaccountingpractices.
Signed
R.Poohn sealed July10,19xx
(name) (date)
D.O.Well sealed July10,19xx
(name) (date)
Accounting30 5 LearningFacilitator'sManual
Module3
Section 1 Activity2
OnJuly3, 19xx, JamesTelfordandBerthaMcMullinformedapartnershipoftworealestateoffices.
Thebalancesheetsofbothbusinesseswererevaluedandareshown.
fames'Telford
&>alasice><SAeel>
3an& 30. 19xx
(ourrentjts&e/&
7 1 0 0 00
Jtccottsifo@ieceu>a6/e' 8 4 0 0 00
1 4 0 0 00
<Sul>]blt£& 1 5 0 0 00
{Total(ourresityts&et^ 18 4 0 0 00
Qlfoce>&aiu£mesit> 10 6 0 0 00
yCatomolnley 12 0 0 0 00
{TotalTared\Asset& 22 6 0 0 00
{Total^isxets^ 41 0 0 0 00
UlalilttieS'
Current^alnlitces/
ytccottsifo (£a/uil/& ' 2 5 0 0 00
Q$anfoHoojv 10 5 0 0 00
TotalCurrentIffialdcties/ 13 0 0 0 00
<SAareAolder&'<Saui£&
Z
Telford, Ga&tal 28 0 0 0 00
Total^alil'ties/and<SAareAolder&>'&aiu£u/ 41 0 0 0 00
Accounting30 6 LearningFacilitator'sManual
Module3
balance'S/ieeb
%n& 30. 19xx
^Assets'
(oas/i/ 5 9 0 0 00
jf j. • // 8 2 0 0 00
Hv^efauSinsurances 1 5 0 0 00
Pit/. 1 3 0 0 00
t/otalburrent<yts&et& 16 9 0 0 00
O-ffice'Scuujl»nent> 11 3 0 0 00
JLut.omcHH/le./' 10 6 0 0 00
STotalSfaced\A&set& 21 9 0 0 00
38 8 0 0 00
^Accounts'&aua/>le' 3 2 0 0 00
11 3 0 0 00
£To£al6urrent>J^a/nlcHeS' 24 5 0 0 00
ifAareAo/cters/'<Sgiu£u'
24 3 0 0 00
&i>£alJ$a/H/i£ie&and<SAareAo/der& <Syui//^ 38 8 0 0 00
Instruction1: RecordtheopeningentryforthenewpartnershipofMcMullinandTelfordonpage 1 of
thegeneraljournal. UseMemoNo. 1torecordJ.Telford'sopeningentryandMemo
No.2forB.McMullin's.
Accounting30 7 LearningFacilitator'sManual
2
Module3
GENERAL JOURNAL PAGE
1
POST.
DATE ACCOUNTTITLE REF. DEBITS CREDITS
1 7 1 0 0 00 1
z 8 4 0 0 00 oz
O 1 4 0 0 00 o
4A C lL/• 1 5 0 0 00 A
(y-f/ice'<ocuupmesit> 10 6 0 0 00 cD
fDt 12 0 0 0 00 fDt
7 y . ST} // 2 5 0 0 00 7
oo 10 5 0 0 00 oo
g 28 0 0 0 00 g
10 JkL&tio-jyo-. 1 10
11 3 5 9 0 0 00 11
119z 8 2 0 0 00 1z
1o 1 5 0 0 00 13
C Li./- 1 3 0 0 00 id.
1£ 11 3 0 0 00 Iy
1fi s ± /•/ 10 6 0 0 00 11foi
17 3 2 0 0 00 17
18 11 3 0 0 00 18
19 <%. McMi/lcrv. 6a/H£al 24 3 0 0 00 19
20 Memo- 20
21 21
22 22
Instruction2: Whatisthejournalentrytoberecordedinthecashreceiptsjournal(page2)if
B.McMiillin'sequityistoequalthatofJ.Telford's?
CASH RECEIPTS JOURNAL PAGE 2
1 2 3 4 5
ACCOUNTS SALES
DOC. POST. GENERAL RECEIVABLE SALES DISCOUNT CASH
DATE ACCOUNTCREDITED NO. REF. CREDIT CREDIT CREDIT DEBIT DEBIT
19XX
1 3 SI. McMt/tvv. (SaJHtal 3 70 0 00 3 7 0 0 00 1
2 2
3 3
4 4
Accounting30 8 LearningFacilitator'sManual