NATIONAL UNIVERSITY

ACCOUNTING PRESENTATION

GROUP MEMBERS:o SYED TAHA GHAYAS (181)o SYED SOHAIL SAJJAD (111)o SAQUIB AGHAI (239)o MUHAMMAD FAISAL (161)o AHMED SYED MANSOOR (145)

DEFINATION:In a Partnership, two or more people share ownership

of single business.

ADVANTAGES:• EASY TO ESTABLISH:

• INCREASE IN ABILITY TO RAISE FUNDS:

• FLOWING OF PROFITS THROUGH PRTNER’S PERSONAL TAX RETUNS:

• PROSPECTIVE EMPLOYES MAY BE ATTRACTED BY INCENTIVE OF BECOMING THE PARTNER:

• BENEFITS FROM COMPLEMENTARY SKILLED PARTNER.

PARTNERSHIP

DISADVANTAGES:o LIABILITIES FOR THE

ACTIONS OF OTHER PARTNERS.

o SHARING OF PROFITS.

o OCCURRENCE OF DISAGREEMENTS.

o LIMITED LIFE OF A PARTNERSHIP.

o NON-DEDUCTIBILITY OF SOME EMPLOYEE BENEFITS.

PARTNERSHIP

TYPES:GENERAL PARTNERSHIP:Partners divide responsibility for management and liability, as well as the shares of profit or loss according to their internal agreement. Equal shares are assumed unless there is a written agreement that states differently.

LIMITED PARTNERSHIP & PARTNERSHIP WITH LIMITED LIABILITY:

"Limited" means that most of the partners have limited liability (to the extent of their investment) as well as limited input regarding management decisions, which generally encourages investors for short term projects, or for investing in capital assets. This form of ownership is not often used for operating retail or service businesses. Forming a limited partnership is more complex and formal than that of a general partnership.

PARTNERSHIP

JOINT VENTURE:Acts like a general partnership, but is clearly for a limited period of time or a single project. If the partners in a joint venture repeat the activity, they will be recognized as an ongoing partnership and will have to file as such, and distribute accumulated partnership assets upon dissolution of the entity.

PARTNERSHIP

FEDRAL TAX FORMS THAT PARTNERSHIP MAY NEED TO FILE:

o PARTNERSHIP RETURN OF INCOME

o PARTNER’S SHARE OF INCOME,CREDIT,DEDUCTIONS.o DEPRICIATIONo INDIVIDUAL INCOME TAX RETURN o SUPPLEMENTAL INCOME & LOSSo SELF EMPLOYMENT TAXo ESTIMATED TAX FOR INDIVIDUALSo EMPLOYMENT TAX FORMS

PARTNERSHIP

SUMMARY:o EASY TO ORGANIZE,BUT

NEEDS TO ORGANIZEo PARTNERS RECEIVE ALL

INCOMEo PARTNERS HAVE LIMITED

LIABILITYo PARTNERS MAY

DISAGREEo LIFE OF BUSINESS MAY

BE LIMITED

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