MODULE 22(ACTIVITY 1)
Name: MYLENE NELLAS HERAGA
Section: BSA 1-COC-A Schedule: W/S 8am-12 pm Date: OCT. 27, 2021
Activity 1: What I Know Chart
What I Know
In Sole Proprietorship
there is only one capital
account while in
partnership, there is more
than one capital account.
The number of capital
account depends on the
number of partners in the
Partnership concern. In
sole proprietorship, All the
profit belongs to the owner
while on partnership, profit
& loss is distributed to the
partners’ capital account
according to the agreed
ratio. Balance Sheet of the
sole proprietorship show
only one capital account
which belongs to the single
owner while in partnership,
the balance sheet shows
the balance of the capital
amount of each partner
classified under owner’s
equity. Besides the income
statement and the balance
sheet of a partnership, a
Statement of Partner’s
Equity is also prepared to
show the CHANGES in
equity of each partner
since the beginning of the
year.
Class number : BLOCK 4
Questions: What I Learned
What do you think are I’ve learned why there is a
differences of financial difference between the
statements of a financial statement of sole
partnership and a sole proprietorship and
proprietorship? partnership. In terms of
Profit and Loss, sole
proprietor is the only
handler of all income and
profit of the business.
Partnership always shared
in agreed ratio. In terms of
Business Privacy, sole
proprietorship acquires all
business information will
be discreet by the owner
itself and Partnership
requires business secrets
to be opened to every
partner. In Finance, sole
proprietorship is minimal in
raising capital fund
because it solely manages
the accounts. It would be
comparatively high in
Partnership. In terms of
Duration of Business
Operation, the duration of
a sole proprietorship would
be uncertain as it depends
on the stability of sole
owner and operator. While
in partnership, it will be
based on the desire and
capacity of the partners. In
terms of Decision Making,

The partners may agree on
any of the following
method or scheme in
distributing profits and
losses:
1. Equally or in other
agreed ratio (arbitrary
ratio)
2. Based on partners’
capital contribution
a. ratio of original capital
investments
b. ratio of capital balances
at the beginning of the
year
c. ratio of capital balances
at the end of the year
d. ratio of average capital
balances
3. By allowing interest on
partners’ capital and the
balance in an agreed ratio
4. By allowing salaries to
partners and the balance
in an agreed ratio
5. By allowing bonus to the
managing partner based
on profit and the balance in
an agreed ratio
6. By allowing salaries to
partners, interest on
partners’ capital, bonus to
the managing partner
and the balance in an
agreed ratio (combination
of 3 to 5).
The partners may agree on
any of the following
in sole proprietorship,
people can decide quickly
and in Partnership, there
would always be delay in
decision-making because it
always depends on the
decision and plans of the
partners.
What are the different I’ve learned that the
methods of dividing Partnership law provides
profits or losses to that profits and losses are
partners? to be divided in
accordance with the
partners agreement. If no
agreement is made
between and among the
partners, profits and losses
are to be divided according
to their capital
contributions. Should the
partners agree to divide
the profits only, losses, if
any are to divided in the
same manner as that of
dividing profits. However,
should the partners agree
to divide losses only,
profits, if any shall be
divided by the partners
according to their capital
contributions. The ratio in
which partnership profits
and losses are divided is
known as the profit and
loss ratio.
What are the different I’ve learned that the
method of dividing Partnership law provides
method or scheme in
distributing profits and
losses:
1. Equally or in other
agreed ratio (arbitrary
ratio)
2. Based on partners’
capital contribution
a. ratio of original capital
investments
b. ratio of capital balances
at the beginning of the
year
c. ratio of capital balances
at the end of the year
d. ratio of average capital
balances
3. By allowing interest on
partners’ capital and the
balance in an agreed ratio
4. By allowing salaries to
partners and the balance
in an agreed ratio
5. By allowing bonus to the
managing partner based
on profit and the balance in
an agreed ratio
6. By allowing salaries to
partners, interest on
partners’ capital, bonus to
the managing partner
and the balance in an
agreed ratio (combination
of 3 to
5).
profits or losses to that profits and losses are
partner? to be divided in
accordance with the
partners agreement. If no
agreement is made
between and among the
partners, profits and losses
are to be divided according
to their capital
contributions. Should the
partners agree to divide
the profits only, losses, if
any are to divided in the
same manner as that of
dividing profits. However,
should the partners agree
to divide losses only,
profits, if any shall be
divided by the partners
according to their capital
contributions. The ratio in
which partnership profits
and losses are divided is
known as the profit and
loss ratio.