View Full Version : How do I enter Owner's Contributions
07-10-2004, 02:33 PM
I am new to accounting as well as to PT. Although I've gotten quite far into setting PT up, I can't determine how to record the deposits of the initial investments which came from the partners (LLC).
PT Help says that in the equity section of your chart of accounts, I must show the initial investment (Paid-in Capital, Owner's Contributions)
My question is: What are the step for entering the initial investment (Paid-in Capital, Owner's Contributions)?
I'm not even sure where the Owner information should be recorded, "Vendors" or where?
Any help would be greatly appreciated.
07-10-2004, 05:25 PM
The first thing you need to do is to look at the partnership agreement to determine if each partner invests the same amount or not, and to determine each partner's share of the profits and losses.
To answer your specific question: Set up an equity account for each partner and then when each partner invests you would have a debit to cash (or some other asset account, if appropriate) and a credit to that particular partner's capital account.
I assume that when you set up the company you indicated in the setup procedure that the company was a partnership. If you did, look at the equity section in the chart of accounts and see if you need to add specific accounts for each partner.
07-11-2004, 12:38 AM
Thank you Lorin,
I have in fact added specific accounts for each partner. I guess what I need to know are the keystrokes for debiting the cash account and crediting each partner's capital account.
I've searched extensively through P/T Help Debiting a Cash Account but found no information there.
Thank you again for your help.
07-11-2004, 09:18 AM
Do it as a general journal entry. Click on "Tasks" and then on "General Journal Entry". Select the appropriate asset account(s) and enter a debit amount and enter the same amount for the appropriate Owner's Equity account. You can do all entries at once, but you may find it simplier to make a general journal entry for each partner's contributions.
vBulletin® v3.8.4, Copyright ©2000-2015, Jelsoft Enterprises Ltd.