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14 Cards in this Set
- Front
- Back
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Dissolution |
The discontinuation of operation or continuing with a different composition or structure |
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Article 1825 of the Civil Code of Phil |
Article that define dissolution |
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Dissolution |
Change in the relation of the oartners caused by any partner ceasing to be associated in the carrying out of business |
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dissolution |
Termination of the life of the partnership |
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liquidation |
Total termination of business activity and winded up of ita affairs in preparation for going out of business |
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Purchase Investment |
2 process of admission of a new partner |
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Admission by purchase Asset Revaluation |
2 methods upon purchase |
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Selling price Book value |
2 kind of pricing |
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BEFORE admission of new partner |
When is asset revaluation done |
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Adjusted capital of old partner |
Becomes the basis for the interest transferred to the new partner |
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Bonus |
Occurence where 3rd partner will transfer equity to new partner or vice versa |
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Removal of an old partner Death Retirement Voluntary Incapacity |
Other occurence that may bring change in oartnership |
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book value Less than book value - bonus to new partner More than book value - bonus to old partner |
Amount of settlement by the partnership to the retiring partner |
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Bonus method Asset revaluation method |
two method used to account for the settlement to the retiring oartner payment |
