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Abdul Rehman
Level 5
posted
‎October 28, 2019 12:14 AM
last updated ‎October 05, 2020 9:16 PM

How to record net income distributions among partners?

Hi All,

 

We are in testing phase of QuickBooks Online Plus. We have made following test transactions:

  1. Entered Opening Balances 
  2. Entered Partner's Contributions
  3. Entered Expenses
  4. Entered Sales
  5. Entered Asset
  6. Performed Asset Depreciation

We are getting certain value of NET INCOME. 

 

Now guide, how to record the profit/net income distribution among all partners, in the system.

 

Regards,

Abdul Rehman.

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1 Comment 1
Rustler
Level 15
‎April 06, 2021 02:40 AM

How to record net income distributions among partners?

At the start of the year, net income is moved to Retained Earnings, then you distribute that amount to the partners.

debit RE, and credit partner equity for their share

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