Accounting Partnership Report Example

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Silverdale Outdoor Supplies (SOS) Silverdale Outdoor Supplies is a partnership in which Angela Park and Shannon To are apart of. Previously known as AP Living, Silverdale Outdoor Supplies (SOS) was own as a sole proprietorship by Angela Park. In 2019, Angela and Shannon agreed to form the partnership Silverdale Outdoor Supplies. After their agreement, they have questions on whether the partnership was the right structure for SOS, on new accounts such as goodwill, and on some of the clauses when signing the partnership. Silverdale Outdoor Supplies is a partnership. The business is currently relatively small so it was an easy structure to set up and has little regulations. The partnership has an agreement so this is what is followed. Being in partnership has enabled Angela and Shannon to combine their skills and expertise. The advantages of being in a partnership is that all partners have equal responsibility and liability for the business’ debts. However, as Silverdale Outdoor Supplies begins to expand, staying as a partnership may impact negatively on its ability to grow because it does not have the limited liability status. This makes it a more risky proposition for investors. It is limited by Angela and Shannon’s ability to raise finance themselves. It is advisable that as the business grows, they should consider changing the ownership structure to a company or limited partnership. A limited partnership provides the limited liability protection of a company, and some of the flow-through tax and confidentiality advantages of a partnership. Angela wants to know what the Goodwill Account is for their Business. Goodwill is the difference between the agreed value of AP Living taken over by Silverdale Outdoor Supplies and the agreed value of the net assets taken over. In this case, goodwill represents the existing customer base, good reputation, and good staff of

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