ADMS 2500 Chapter Notes - Chapter 13: Limited Liability Partnership, Limited Liability, Capital Account

• School: York University
• Department: Administrative Studies
• Course: ADMS 2500
• Professor: Haiping Wang

Document Summary

Advantages: combining skills and resources of 2 or more individuals, easily formed should have a written agreement p. 608, relatively free of gov"t regulations and restrictions, ease of decision making. Limited partnerships: one or more partners have unlimited liability (general partner) Limited liability partnership (llp: used by professionals, e. g. lawyers, doctors, accountants as they are not allowed to incorporate, protects innocent partners from negligence claims against another partner. Partnerships accounting: a separate capital and drawings account for each partner, fair mrkt values assigned to non-cash assets when beginning the partnership (see pp. 609-610: partner may loan cash to business and have it reflected in his/her capital. May 9th, 2014 may 23th, 2014: at year end is is closed to partners" capital accounts based on profit sharing ratio. If no mention of income division split equally: a schedule showing changes to all partners cap should be prepared (see pp.