国际会计英语 Chapter 4.pptVIP

Chapter 4 Partnership 2 Partnership change Two Possibilities for Partnership Changes Expansion ---- Change of profit-share ratio ----Admission of new partners ----Two partnership Amalgamation Diminution ----One of partner retire or die ----Convert into corporation Two kinds of partnership changes Constructive changes and Real changes Constructive Changes Definition: Each capital has changed but no change in total capital Transactions result to constructive changes: 1. To vary profit-share ratio. 2. To admit new partner as replacement for an existing partner. Real Change in Partnership