Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
T
tonyfanm
October 10, 2020
Question

Partnership Profits Distribution

  • October 10, 2020
  • 1 reply
  • 1 view

I have a LLC partnership and will be distributing Q3 2020 profits between the partners. What is the Journal entry to show the distributions from Net Profit? is it okay to Debit RE and Credit each partners equity? Is the entry done in Q4?

1 reply

Rustler
Rustler
Level 15
October 11, 2020

Yes, use a journal entry, debit retained earnings, and credit each partners equity account

 

In my partnership we only distribute RE at the start of the new year after all income tax adjustments are made.  Consider the impact of a sudden loss in Q4, that can make a mess of things

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
Terms & ConditionsAccessibility statement