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Week Four - any remaining cash to the partners(Horngren...

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I didn’t see the rule regarding never going in to business with friends or family in the Partnership Supplement, so I guess it is an unwritten rule. Assuming we have thought long and hard before venturing in to business together as friends, the first step we need to take is to write a written agreement. Contained in this written agreement are: 1. Name, location and nature of the business 2. Name, investment and duties of each partner 3. Procedures for admitting a new partner 4. Method of sharing profits and losses among the partners 5. Withdrawals of assets by partners 6. Procedures for settling up with a partner who withdraws from the firm 7. Procedures for liquidating the firm – selling the assets, paying the liabilities, and giving
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Unformatted text preview: any remaining cash to the partners (Horngren, Harrison, & Oliver, 2009). With all of this information agreed upon and put in writing, hopefully some of the pitfalls of going in to business with a friend can be avoided. I still don’t think it is a good idea and I personally wouldn’t do it. There is not enough Valium on the east coast; nor enough money in growing plants (unless they are illegal…and that prospect opens a whole new can of worms) to justify ruining a friendship by going in to business together. Work Cited: Horngren, C.T., Harrison, Jr., W.T. & Oliver, M.S. (2009). Accounting, Chapters 1-14 (8 th ed.) Partnership Supplement. Upper Saddle River, NJ: Prentice Hall....
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