LIFE TIME:
Bill Adongo had
been a faculty member in department of Mathematics in University University For Development Studies the years 2006-2013.
Even though he has never been in accounting field, he is pioneer of the Central
Accounting. Many of his extensive is professional Actuarial
careers. Below is one of his inventions in one of his weblog.
CENTRAL ACCOUNTING:
Central Acounting is a special branch of accounting
that applies the Central Point Law for computing two unknown values from one or
more known values.
PARTNERSHIP:
The most popular form of Business is partnership which
allows several individuals to combine their talent and practical skills in one
business ventures. Partnership is not only combining talents and skills but
also a means of obtaining more equity capital than a single individual can
obtain and allow the sharing of risk for rapidly growing businesses.
From accounting viewpoint, the partnership is a separate
business entity. Secondly accrual accounting is the most useful account for
partnership operations that use the cash basis or modified cash basis of
accounting. New partners get his share from the first and foremost step in determine
how to account for the admission of a new partner’s proportion of the
partnership’s book value and percentage of capital to new partner is as
follows.
New Partner’s Proportionate book
value=2(percentage of capital X Prior capital of present partners)
Investment in new Partner Value= New
Partner’s Proportionate book value/2 X percentage of capital)
Where NPV is new partners proportion of the partnerships
book value, PCP is prior capital of
present partners and NP is Investment of new partner and PP percentage of
capital to new partner.
EXAMPLE
In partnership, if the new partner’s proportionate book
value and the new investment in partnership value are unknown, I can compute
them if the prior capital of present partner is $3000 and percentage of capital to new partner is 0.25.
I investment in new partnership
3000/2x0.25 =
|
$6000
|
New partners proportionate book value
2x0.25x3000 =
|
$1500
|
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