This would involve closing the income and expense accounts to each partner's equity account. There are various methods to do this depending on how you account for income and expenses for each partner. You can post only summaries as net profit or loss, or each actual income and expense and have the balance be the net profit or loss. There are many ways to set up the closing entries.
This would be done through a year end general journal entry to close income and expense accounts to the partner equity accounts.
This question is too complex to handle on this Forum. Please refer to the Navigator Resource Center for detailed information on Partnership Accounting. Note that authentication is required to access the Navigator Resource Center. For information on accessing the Navigator Resource Center,please refer to the subscription information page.
[This message has been edited by fniadmin (edited 12-31-2002).]