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Are Partner's draws and partner's contributions the same thing?
I am setting up equity sub accounts and I can't find it?
Good day, JB155.
Partner's Draw and Partner's Contribution are two different things. Partner's Draw or Equity drawing is the value recorded that was taken from the business. Partner's Contribution is recording the value put into the business.
One of our top contributors shared an information about the difference between the partner's equity and the partner's contribution accounts. Click this link to be routed. Despite of that, It would still be best to reach out to an accountant for more expert advice.
You might want to keep this article handy about creating subaccounts in QBO: Create subaccounts in your chart of accounts in QuickBooks Online.
If you have other questions about QuickBooks, please don't hesitate to go back to this thread.
Thanks for the reply.
I meant to ask if Partner's draws the same as Partner's distributions. Are those the same?
I will take a look at the links provided though, thank you.
Hmm. The link seems to bring me to an "access denied" page.
Charles_M,
What I wanted to do was
Partner's equity (type detail: partner's equity)
->partner #1's equity
-->partner #1's contributions (detail type contributions? or detail type partner's equity since it is a sub-account)
-->Partner #1's draws (detail type?)
->Partner #2's equity
-->partner #2's contributions (detail type?)
-->Partner #2's draws (detail type?)
This QBO youtube video about paying an owner back for a purchase made with personal funds has owner investment and owner draws accounts: https://youtu.be/s3MNClNklg8
Seeing as I have a partnership, would I make these sub-accounts of the parent partner's equity. and then ANOTHER sub account for draws and investments?
The fact that there are detail types options for partner contributions and partner distributions is what is confusing me.
And in this thread below:
He has three subaccount for each partner.
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