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zeclassicfinery
Level 1

LLC Partnership Ledgers

Hi! Total newbs in the bookkeeping space here. We've just started our LLC Partnership (2) partners which involved a 50/50 ownership setup where we each fully gave $415 of worth of cash, inventory and supplies 'investments' in exchange for the shares. We will be connecting our business checking moving forward but did have transactions from a personal banking account for about 2 weeks before the business checking was established. Additionally, all of our sales currently are through eBay and we plan to use Synder to automatically flow in eBay transactions. 

 

From everything I've read we need to have a general ledger which will be linked to our business checking (obvious) as well as contain the pre-biz checking transactions (we'll use this to balance out any lingering unspent eBay payouts that landed in the personal account), and an eBay ledger that will be reconciled against the bank ledger but also account for additional biz expenses like taxes collected by eBay, selling fees, postage and advertising fees that won't be seen on the general ledger. What I am not clear on is how to account for the initial investments and how to properly ledger those. Can anyone point me to some how-to posts or online resources or a good 'llc bookkeeping for dummies'? 

Solved
Best answer October 08, 2021

Best Answers
Rustler
Level 15

LLC Partnership Ledgers

I suggest for sole proprietors and partnerships the owner/partner equity accounts look like this:

[name] Equity (do not post to this account it is a summing account)

>> Equity ( first of the year roll up drawing and investment into this account as well as retained earnings)

>> Equity Drawing (record the value you take from the business here)

>> Equity Investment (record the value you put into the business here)

 

QB does not work on ledgers, it uses accounts which are sometimes called categories in QB.  The work flow determines what actual ledgers are posted to behind the scenes, it will not work properly if you by pass using the work flow.

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1 Comment 1
Rustler
Level 15

LLC Partnership Ledgers

I suggest for sole proprietors and partnerships the owner/partner equity accounts look like this:

[name] Equity (do not post to this account it is a summing account)

>> Equity ( first of the year roll up drawing and investment into this account as well as retained earnings)

>> Equity Drawing (record the value you take from the business here)

>> Equity Investment (record the value you put into the business here)

 

QB does not work on ledgers, it uses accounts which are sometimes called categories in QB.  The work flow determines what actual ledgers are posted to behind the scenes, it will not work properly if you by pass using the work flow.

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