LEARNING MATERIAL

in

PrE6
Accounting for Special
Transactions
A compilation of lessons/activities

Edna l. Bernal
 Disclaimer

This learning material is used in compliance with the flexible teaching-learning

approached espoused in response to the pandemic that has globally affected educational

institutions. Authors and publishers of the contents are wee-acknowledged. As such the

college and its faculty do not claim ownership of all sourced information. This kearning

material will be exclusively used for instructional purposes at the College of Business and

Accountancy, Catanduanes State University and not for commercialization.

College of Business and Accountancy

 PREFACE

This learning material is prepared to guide the students in learning the concepts of the topics to be
taken up in the course Accounting for Special Transactions by third year BS Accountancy students this
1st semester SY 2020-2021. This covers accounting principles and procedures for partnership accounting
- formation, operations, dissolution and liquidation, corporate liquidation, joint arrangements, installment
sales, PRFS 15 – Revenues Contracts with customers applicable to consignment sales, long-tern
construction contracts and franchises, PRFS 11 for insurance contracts and accounting for home office,
branches and agency.

The discussion of the different lessons/topics and illustrations were designed and prepared to
provide students with direct-to-the-point and analytical examples that are easy to comprehend and
enhanced easy learning through a procedural approach. The questions, problems and multiple choices
problems are prepared to check, evaluate the overall comprehension of the basic principles and concepts
underlying specific topics. To enhance skillful application of accounting principles and concepts, exercises
and problems prepared range from simple to complex ones. This will help students build confidence in
applying accounting principles in concepts in solving problems and mastering the course Accounting for
Special Transactions.

The Author
 TABLE OF CONTENTS

Module Overview 1

Learning Outcomes 1

Module Map 2

Unit I – Partnership Formation and Operation

Definition, nature and characteristics of Partnership 3-9

Partnership Formation 10 – 26

Partnership Operation 27 – 43

Unit II – Partnership Dissolution 44 – 61

Unit III – Partnership Liquidation 62 – 87

Unit IV – Corporate Liquidation and Reorganization 88 – 107

Unit V – Joint Arrangements 108 – 127

References 128