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Accounting & Bookkeeping & Small Business Forum
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Guest
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| Posted: Wed Jun 09, 2004 3:30 am Post subject: Owner's Equity Account & Net Income |
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I finally was got my first client. They are a partnership and I'm trying to set their accounts up in QuickBooks.
The money that's coming in as Net Income is being shown on that line in the Balance Sheet. I would like to, each month split that net income into each of the partner's earning account? Is that correct accounting? If it is, or not, how should I show that.
The reason for the question is that, after each month, we want to look at the NET INCOME and draw (almost) 1/2 for each one. We'd like to take 10% of the net income and leave that in an account that we keep for emergency business issues. How would that be done?
Thanks in advance. |
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Guest
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| Posted: Thu Jun 17, 2004 7:05 am Post subject: RE: Owner's Equity Account & Net Income |
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| I would do the distribution on a separate sheet of paper -- great application for Excel or Lotus. Otherwise you will need to make a "closing" entry each month, thereby eliminating the monthly accumulation of sales, costs and expenses. The typical cycle is to eliminate these balances at the end of the year. |
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Guest
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| Posted: Thu Jun 17, 2004 8:09 am Post subject: RE: Owner's Equity Account & Net Income |
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Bryan,
What would the entries be? Thanks, Angela |
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