Owner's Draws in a Partnership. Which figure shows what can be withdrawn?

Thank you for your help. We currently have a main Owner's Equity account set up for each partner, along with an owner's contribution and owner's Draw sub account under each.

However, one thing I have not been doing, is rolling up investment and draws to each main Owner's Equity account, and have not been rolling up RE either. I'm guessing I can still do this by backdating the entries for 1/1/14 and 1/1/15? Guessing I just need to also ensure they match up with the K-1's from each tax year?

And when you use the journal entry to roll up RE, I am either debiting or crediting the main Owner's Equity account for each, right? So then the sub accounts for draws and contributions should only show the current year's activity, and each main one will show the combined activity/balance from the start of the business?

And, after I would update these entries, I would then be looking at each main Owner's Equity account to see what is available to draw from?

Thank you and I apologize if my questions are redundant, as I am an amateur at this.

yes you can back date the RE roll up

the K-1, providing equity in the K-1 is optional until you reach an annual amount of income, I do not have that amount handy but it is in the millions.  Personally I do not give the IRS more info than absolutely required - your choice

Tax accounting is sometimes different than QB due to the way QB operates, I would be more concerned with QB

Yes in answer to the draws, again y'all need to make a decision about how you treat negative equity, either allow it but no draws, or do not allow it and require an investment

"I know that each of our equity accounts need to show a positive number and need to be available before each of us can take a withdrawal."

That is not quite correct. Running your Balance Sheet might show you that net Income is positive, which means the Current Cycle has positive Equity; it just isn't posted to Equity, yet. You can decide if the business can survive without some funds in the bank, based on current Performance.

I might be in a ideal position doing the qb and ttax business for 2 llc's.  I keep fine tuning my qb accounts so they match the account for the 1065.     my goal is to make them the same.  W ttax business. there is a form in there called capital account and basis report. i it shows all parnters beginning cap act, how much is contributed (my eq act joe contrib),  each partners share of income (net income from p/l) then it debits all withdrawls (eq account joe draw).  One llc has stock investments and the statement never matches the 1099 but with a little invest adjust asset act you can take care of the minor differences.   I do the dreaded 1065 "L" balance sheet and work at qb till all the numbers are the same.   first of year using gen journal I put all the draws and contribs and retained earnins  (net income) into their respective member equity accounts. now everyone is back to zero draw and contrib for the start of the year and all qb equity accounts match the k-1's  and I'm supremely happy.    

I have a LLC Partnership (50/50). Only one partner has contributed and it was in Owner's Investments. Now that he wants to take a first draw I read though you recommendations and set up sub-catergories for each partner and my question is: Do I change the total amount in Owner's Investments to 50/50 for each partner? Because each new account asked for the beginning amount I put the total original amount for all of it in each Owner Draw account and it rolled up to triple  the amount in Owners Investments. Should I split the total between the 2 Partner Equity Accounts?

 

Also I changed the category for one debit Owner's Investment to Partner Draw 1 and it rolled up to the Owner's Investment but it doesn't show in the new Equity account for Partner Draw 1.  Is this correct?