cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Get unlimited expert tax help and powerful accounting in one place. Check out QuickBooks Online + Live Expert Tax.
sunchard
Level 1

Negative Retained Earnings

My partnership business started in 2020 and ended up with a negative retained earning last year. I took 100% of the loss. How is this accounted for? Should this loss be distributed to my equity account?

Solved
Best answer December 12, 2021

Best Answers
Rustler
Level 15

Negative Retained Earnings

Yes, you do a journal entry to move RE to partner equity

 

For an RE loss, debit partner equity and credit RE for the amount attributable to each partner.  Note that you are supposed to abide by the partnership agreement which dictates the percentage of gain or loss per partner

View solution in original post

1 Comment 1
Rustler
Level 15

Negative Retained Earnings

Yes, you do a journal entry to move RE to partner equity

 

For an RE loss, debit partner equity and credit RE for the amount attributable to each partner.  Note that you are supposed to abide by the partnership agreement which dictates the percentage of gain or loss per partner

Log in today
Get expert help and peer support to tackle all your QuickBooks questions effortlessly.

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up