|
Author
|
Topic: Equity accounts
|
jordonez
Member
|
posted 08-22-2000 02:10 PM
 
I track financial info for a minor child who has some assets in UGMA status and also a trust set up by his grandfather. I put all the info in one entity with qualifiers to separate the two, but the equity accounts are combined. Is there anyway to set up the equity accounts to keep them separate without having to use two completely separate entities?
IP: Logged |
Renee
Member
|
posted 08-22-2000 05:56 PM
It’s possible but not the best choice. The best method would be to account for the UGMA assets and the trust assets in two different entities and to use Advanced Reports to combine the two where necessary. That way you’d be able to have completely separate financials for the two entities, or combined as necessary. Consider posting your question to the Advanced Reports Forum and seeing what kind of suggestions you get for doing it that way.If you don’t want to use Advanced Reports, here’s a workaround. It’s not particularly elegant or easy, but it will work.
- Go back to the first year of the combined entity. (“Year 1”)
- Identify the beginning balances of each entity.
- Insert the following new accounts in the Equity section of the Chart of Accounts of the combined entity, using the same qualifier scheme you are already using:
-- Allocated Net Worth-Beginning
-- Net Worth-Beginning/UGMA
-- Net Worth-Beginning/Trust - In Year 1, make the following General Journal entry:
--Dr Allocated Net Worth-Beginning
------Cr Net Worth-Beginning/UGMA
------Cr Net Worth-Beginning/Trust - At the end of Year 1, identify the net income for each sub-entity.
- Insert the following new accounts in the Equity section of the Chart of Accounts of the combined entity, using the same qualifier scheme you are already using:
-- Allocated Net Income-Current Year
-- Net Income-Current Year/UGMA
-- Net Income-Current Year/Trust - In Year 1, make the following General Journal entry:
--Dr Allocated Net Income-Current Year
------Cr Net Income-Current Year/UGMA
------Cr Net Income-Current Year/Trust - If your balance sheet is at market value and you thus have Unrealized Gains & Losses, you’ll have to perform the same steps for the UGL account.
- Repeat for each subsequent year.
These steps are (quite obviously) a lot of work. If you really need separate equity sections, I’d strongly consider putting the UGMA and the Trust in two separate entities whether you use Advanced Reports or not!
------------------
Renée Trudeau
Financial Navigator Service Provider
IP: Logged | |
Navigator User Forums
UBBFriend: Email This Page to Someone! 
