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?
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
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
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