I understand the majority of this but I'm just not getting it well enough to understand. I'll try to explain and hope somebody can help.
At the end of the year the company has made a net profit (hopefully), on the first day of the new fiscal year QB moves that Net profit to the retained earnings account. Does this happen automatically?
Then you do a journal entry to distribute net profit to the partners
debit RE for the full amount in the account
credit partner 1 equity for 50% Is this one of the 3 accounts that are under the partner equity account? (Do all 3 accounts there get summed together? Equity, Draw, Investment?)
credit partner 2 equity for 50%
you close the drawing and investment as well as the retained earnings account to partner equity with journal entries
debit investment, credit equity debit investment for the partner and credit equity of the company or the partner?
debit equity, credit drawing for each partner? or the company equity account?
debit RE, credit equity for the partner share RE is a company account
See my confusion? I'm not sure which accounts to debit and which to credit.
I've attached my balance sheet for the end of 18 and 19 if somebody cares to let me know what to modify and what journal entries to do for end of year 18 and end of year 19.
After this I've got the 1 company (LLC-S) that owns this partnership and my other company that's much easier as a LLC-C. Rather pay taxes than deal with all this crap.