Integrating tax and financial accounting concepts into the partnership accounting curriculum

The integration of partnership financial accounting and tax accounting into the accounting curriculum has become very important in the current environment of increased partnership activity. The primary purpose of this article is to assist accounting educators in both financial and tax courses with this integration process. To accomplish this objective, a partnership's life cycle is detailed from formation to liquidation. Journal entries are presented to enable the reader to quickly assimilate the transactions involved in the life cycle. Supporting worksheets and partners' tax basis tables are also presented to depict the position of the partnership and partners, respectively, at the end of each stage of the life cycle. This article's example is designed to permit accounting instructors to integrate both tax and financial accounting concepts when teaching either advanced accounting or partnership taxation in the most efficient manner.