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    Partnership

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    kath
    This document discusses key aspects of partnerships under Philippine civil code, including: 1. Partnerships are governed by the Civil Code of the Philippines and are formed by agreement between two or more persons who contribute money, property, industry or skills. 2. Partners share profits and losses in proportion to their capital contributions unless otherwise agreed. 3. Partners are unlimitedly liable for the partnership's obligations.

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    Partnership

    Uploaded by

    kath
    6 views2 pages
    This document discusses key aspects of partnerships under Philippine civil code, including: 1. Partnerships are governed by the Civil Code of the Philippines and are formed by agreement between two or more persons who contribute money, property, industry or skills. 2. Partners share profits and losses in proportion to their capital contributions unless otherwise agreed. 3. Partners are unlimitedly liable for the partnership's obligations.

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    This document discusses key aspects of partnerships under Philippine civil code, including: 1. Partnerships are governed by the Civil Code of the Philippines and are formed by agreement between two or more persons who contribute money, property, industry or skills. 2. Partners share profits and losses in proportion to their capital contributions unless otherwise agreed. 3. Partners are unlimitedly liable for the partnership's obligations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    6 views2 pages

    Partnership

    Uploaded by

    kath
    This document discusses key aspects of partnerships under Philippine civil code, including: 1. Partnerships are governed by the Civil Code of the Philippines and are formed by agreement between two or more persons who contribute money, property, industry or skills. 2. Partners share profits and losses in proportion to their capital contributions unless otherwise agreed. 3. Partners are unlimitedly liable for the partnership's obligations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Afar Contract - creates by merely agreement

    2 or more persons

    PARTNERSHIP
    GOVERNED BY THE CiViL
    CODE OF THE Money (Cash)
    Contribute Property (Non-cash asset)
    Jdksgdasx,sbj PHiLiPPiNES (ART. 1767)
    Industry (Services/Skills)
    Dividing
    ADVANTAGE - EASE DiSADVANTAGE - profits
    OF FORMATiON UNLiMiTED LiABiLiTY

    Operation ALLOCATiON OF
    Formation CREATiON OF PARTNERSHiP
    NET iNCOME

    RULE: Allocate Net income/ Net loss based P&L RATiO


    VALUATiON OF iNVESTMENT: on the partnership agreement
    CASH Face amount TYPiCAL TERMS: 1. Salaries - Industrial Partners
    1. Agreed value 2. Bonuses - Managing Partner
    NOT RECORDED
    NON-CASH 2. Fair Market Value AS EXPENSES OF If net loss, no bonus
    ASSET 3. Carrying value THE PARTNERSHiP 3. Interest - Capitalist Partner
    - % of Capital balance
    LiABiLiTiES Original - during formation
    Beginning
    Ending
    Simple
    Average
    Weighted - if silent
    CiViL CODE: 1. If only the sharing of profits X, CAPiTAL
    has been agreed upon Beg balance
    - losses shall be the same Net income
    2. In absence of agreement Withdrawal Addt’l investment
    - proportion to original
    -

    Ending balance
    capital contribution
    Dissolution Change in interest
    in the partnership.
    - Addition or reduction in
    the number of partners Contributed/
    = Agreed/ No bonus
    invested Credited
    Private/personal transaction Bonus to the
    PURCHASE OF iNTEREST CC > AC old partner
    Jdksgdasx,sbj
    ADMiSSiON No change in capital
    Bonus to the
    CC < AC
    INVESTMENT iN PARTNERSHiP in Capital, in asset new partner

    PURCHASE OF iNTEREST
    WiTHDRAWAL/
    SETTLEMENT BY PARTNERSHiP Ease of raising
    note!!!
    takeALWAYS
    RETiREMENT UPDATE
    INCORPORATiON addt’l capital CAPiTAL BALANCES
    OF A PARTNERSHiP
    Partnership to WHENEVER THERE iS
    corporation Unlimited life
    A DiSSOLUTiON
    Easy transfer
    of ownership

    1. Personal creditor
    Liquidation ORDER OF 1. PARTNERSHiP’S
    Creditors canrun after the
    personal assets of the partners. 2. Partnership’s creditor
    PRiORiTY: CREDiTORS
    2. INTERNAL CREDiTOR
    Liquidation process:
    3. PARTNER’S CAPiTAL BALANCES
    1. Sell all NCA at NRV.
    (Convert NCA to Cash) Liquidation process is completed
    2. Pay the creditors LUMP SUM
    at a short period of time.
    3. Distribute remaining cash
    to the partners (if any) Liquidation process
    INSTALLMENT takes time to complete
    1. STATEMENT OF To determine how much cash can
    REPORTS: be safely distributed to the partners.
    REALiZATiON & LiQUiDATiON
    2. SCHEDULE OF SAFE PAYMENT 1. Est’d liquidation expense
    For installment MAXIMUM
    liquidation only 3. CASH PRiORiTY PROGRAM/
    CASH DiSTRiBUTiON PLAN POSSIBLE LOSS 2. Cash withheld for future liability
    3. Remaining book value of NCA

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