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Author Topic:   RETAINED EARNINGS
TLAW
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posted 06-18-2002 07:22 PM     Click Here to See the Profile for TLAW   Click Here to Email TLAW     Edit/Delete Message
Sirs,
I have been using your Financial Navigator program for a couple of years. The version I'm working with is 8.0. Please advise on how to close Retained Earnings to the Capital accounts at year end in a Partnership.
There is no way to access the Retained earnings account. It is not in the chart of accounts.

[This message has been edited by TLAW (edited 06-18-2002).]

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Pamela
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posted 06-19-2002 09:05 AM     Click Here to See the Profile for Pamela   Click Here to Email Pamela     Edit/Delete Message
See the forum post reply for Partnership accounting book

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Pamela
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posted 06-27-2002 09:28 AM     Click Here to See the Profile for Pamela   Click Here to Email Pamela     Edit/Delete Message
There are several methods to do this depending on what kind of audit trail you want.

All income and expense amounts need to be closed to the capital accounts at year end. Go into the previous year and do general journals to close these accounts. This will zero out your net income/retained earnings. Then you can update your starting balances in the New Year.

Or in the current year, you can select Accounts | Equity Name Changes and change the net income amount to 0. Then manually update the starting balances for your capital accounts.

See the post Prior year net income and the post Year End partnership distribution for additional information.


[This message has been edited by Pamela (edited 06-27-2002).]

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