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Level 1

What is the best way to reflect the allocation of income to partners. Specifically the journal entry date

 
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Level 15

What is the best way to reflect the allocation of income to partners. Specifically the journal entry date

I roll up all the drawing and investment equity accounts for each partner on the first of the new year.  That zeros them so this years transactions are easy to see.

 

I do the same for retained earnings, the first of the new year.  Though I do not record that entry until I am sure there no additional income tax adjustments to be made.

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