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Level 1

How do I record a partner contribution in the form of fixed assets?

One of the business partners is providing furniture and other fixed assets for the company, and I need to record the total value of those assets as partner contribution. How do I do that?
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Best answer 10-15-2018

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Level 15

How do I record a partner contribution in the form of fixed assets?

create the asset accounts you need for furniture and other fixed assets

journal entry

debit asset account $$
debit asset account $
etc etc until all assets accounts and fair market value for each are listed
credit partner equity investment for the total amount

I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

owner/partner equity
owner/partner equity drawing - you record value you take from the business here
owner/partner equity investment - record value you put into the business here

View solution in original post

3 Comments
Highlighted
Level 15

How do I record a partner contribution in the form of fixed assets?

create the asset accounts you need for furniture and other fixed assets

journal entry

debit asset account $$
debit asset account $
etc etc until all assets accounts and fair market value for each are listed
credit partner equity investment for the total amount

I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

owner/partner equity
owner/partner equity drawing - you record value you take from the business here
owner/partner equity investment - record value you put into the business here

View solution in original post

Highlighted
Level 2

How do I record a partner contribution in the form of fixed assets?

Rustler,

 

Does it apply the same if owner contribute product or raw material that will make up the product?

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Anonymous
Not applicable

How do I record a partner contribution in the form of fixed assets?

Hi Rustler!  

I read your help instructions often, so Thank you!

I am new to QB (using QBO) accounting and accounting in general.

 

on the above article can you tell me if each of the fixed asset accounts can be/should be sub accounts of a parent account of Fixed Assets?  Which would be the best format?  I am thinking I should set them up as subs.  

 

Thank you!

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