cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
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?
Solved
Best answer 10-15-2018

Best Answers
Level 15

create the asset accounts you need for furniture and othe...

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
Level 15

create the asset accounts you need for furniture and othe...

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

Level 2

Re: create the asset accounts you need for furniture and othe...

Rustler,

 

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

Anonymous
Not applicable

Re: create the asset accounts you need for furniture and othe...

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!

Need to get in touch?

Contact us