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cactus
Level 1

LLC: Partnership Year End Accounting Entries

So Quickbooks online automatically closes temporary accounts into R/E, that's not an issue.

 

My question is what date do I effect the journal entry allocating R/E to the Partner Equity accounts respective to the partnership agreement.

 

If I date the entry 12/31/2018, then when I run a balance sheet report for that year, R/E does not shows negative (since Quickbooks does not show the closing entry to be effected until 1/1/2019).

 

However, if I date the entry 1/1/2019, then the 12/31/2018 balance sheet line totals for the Partner Equity accounts doesn't match the K-1 statement item L: Partner's Capital Account Analysis. (since that shows current year increase) and if someone were to take a glance at 12/31 balance sheet and the K-1, the ending balances would not match.

 

So, which is the best way to do it?

2 Comments 2
Rustler
Level 15

LLC: Partnership Year End Accounting Entries

I move RE to equity on 1/1

as well as rolling up drawing and investment to equity on that date too

 

Out of curiosity, why are you reporting equity positions on the income tax filing, it is optional until you have a gross income of $10M (I think I remember that right, might be $1M though)?

cactus
Level 1

LLC: Partnership Year End Accounting Entries

Okay so that's how I did it initially, since it made the most since of the two.

 

I am reporting Schedule L even though we are not required just out of transparency for the company. I figure it will help in the even we do get to a point that we have to report, we will already have a history of reporting it?

 

Although one of my pet peeves with the 1065 is that it is whole numbers only, so the rounding errors caused a $1 difference.

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