Month: January 2022

The profit and loss account of a company, is the same as that of a sole trader, but there are additional expenses that are unique to the company and therefore, they should be included in the in this account (e.g.) Read More …

The owner’s interest in a limited company consists of share capital. The share capital is divided into shares. A share is the smallest unit of ownership in a company. The investor will then pay for and be issued with the Read More …

Limited companies come into existence because of the growth in size of business and the need to have many investors in the business. Partnerships are not suitable for such businesses because the membership is limited to twenty persons. There are Read More …

When a partner retires (i.e.) leaves the firm and the others partners are left to continue with the business then the retirement marks the end of one partnership and the start of a new one. The partner who is leaving Read More …

When a new partner is admitted into the firm, this marks the end of the old partnership and the beginning of a new one. The new partner will have to bring in the capital that is due from him as Read More …

The business may revalue some of the assets to reflect their fair values (e.g.) based on market price. The revaluation is normally done when a new partner is to be admitted or an old partner is retiring. Any revaluation gains Read More …