Partnership

According to the Uniform Partnership Act is An association of two or more persons to carry on as co-owners a business for profit.

The types of business entities in Indonesia

1. Individual business entities (Proprietorship)

Business entity owned by one individual person only. Example: UD, CV, PD, and so on

2. Legal Entity (Partnership)

Dimilliki business entity by two or more persons. For example: Firm, Foundation, Cartel and so on.

3. Company Business Entity (Corporation)

Business entities through stock ownership. Examples: Limited Liability Company, Corp., Ltd. and so on.

The Differences Partnership and Limited Company:

 

	Partnership	Corporation
Business Entity	There is no separation	Separation
Legal Responsibility	Joint	No
Term Time	Limited	Not limited
Debt Responsibility	Ally guarantee personal assets	Limited to the share capital
Asset Ownership	Ally belong together	The Corporation
Profit or loss	Ally affect the capital account balance	Affect the retained earnings account
Legality	Registration Court	Permit approval KUM minister and Human Rights

FORMATION

Marked with the investment or transfer of funds from each - their allies in the fellowship.

Example: A, B and C agreed to establish communion with the name of the firm Trend. Investment data respectively - each appears in the following table:

Types of assets are handed over in	Fair Value of Assets (U $)
	A	B	C
Cash	U$ 35,000	U$ 30,000
Land (Book Value              U$ 50,000)	U$ 40,000
Building (Book Value              U$ 45,000)	U$ 30,000
Machine (Book Value              U$ 25,000)			U$ 15,000
Total	U$ 10,5000	U$ 30,000	U$ 15,000

 

Journal	Debit	Credit
Cash Land Building Machine Allied Capital A Allied Capital B Allied Capital C	U$ 65,000 U$ 40,000 U$ 30,000 U$ 15,000	U$ 10,5000 U$   30,000 U$   15,000
Allied Capital carried at Fair Value or Market Value of each - each investment in accordance with the agreement submitted in accordance.

 

Recording capital ally not based on the fair value of investments transferred.

a. Method Bonus

For example, A and B agreed to recognize capital C machines are recognized at U $ 20,000 that was initially recognized at U $ 15,000, mean C earn a bonus of $ 5000. Bonus C by reducing the capital A and B.

Journal Bonus:

          Allied Capital A U $ 2,500

          Allied Capital B U $ 2,500

                            Allied Capital C U $ 5,000

b. Goodwill Method

Suppose that A and B agreed to assess the capital C initially recognized at U $ 15,000 U $ 25,000 because of the role of C is important for fellowship.

The excess is recorded as goodwill and amortized over 10 years.

Journal of Goodwill

        Goodwill U $ 10,000

                      Allied Capital C U $ 10,000

Journal of the transaction in the corporate community as a proprietorship or a journal of transactions the company.

• Sales transactions

• Transaction purchase

• Transaction cash receipts

• Transactions of cash

• Adjustment

DISTRIBUTION OF PROFIT AND LOSS COMPANY

• The procedure for distribution of profit or risk of loss should be agreed jointly by the allies at the time of the establishment of fellowship and described in the Deed.

• Salaries for allies who work in partnershi, bonuses, interest on investments is an account that should not be recognized as Operating Expenses in the Income Statement. But recorded as a deduction from net income before shared with the partners in accordance with an agreed ratio.

METHOD OF DISTRIBUTION OF PROFIT AND LOSS

• Shared flat (equally) to all allies

• Divided by a fixed composition of each year.

• Divided by the ratio of the beginning balance of capital ally the establishment

• Divided by the ratio of the final balance allied capital end of each accounting period

• Divided by average capital balance for each period allies