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If I code a partnership distribution as a distribution coming out of the painter account...how do I code the deposit going into the opposite account?

 
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Re: If I code a partnership distribution as a distribution coming out of the painter account...how do I code the deposit going into the opposite account?

I have no idea what a painter account is.

Partnerships do not have distributions, if a partner takes funds out of the business, that is a partner equity draw.

A Partnership is a business, it makes money and spends money, that does not happen per partner in the accounting. The end of the year the partnership files taxes and doing so it creates a form K-1 per partner. That form shows each partners share of income and expense per the partnership written agreement. That K-1 is used to fill out the partners individual tax return.

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Re: If I code a partnership distribution as a distribution coming out of the painter account...how do I code the deposit going into the opposite account?

As @Rustler will probably also explain you should have a set of 4 equity accounts for each partner. One is a summing account and never directly posted to. The other 3 are sub accounts of this and are Partner Equity - Partner Draw - Partner Contribution.

 

In effect, even if you only used one equity account per partner, money out to a partner reduces their equity or stake in the business and money a partner puts in increases their equity.

 

Unless otherwise stated by partnership agreement an imbalance in equity positions at year end may have an effect on profit/loss distribution on paper. Read your agreement carefully