Shareholder Distributions
What is the proper way to handle shareholder distributions/draws on the balance sheet and post to "Due To SH" and "Due from SH" at close of year?
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lyndasteve
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12/29/11 7:33am PST
Viewed by asker 01/03/12 5:54pm PST
Viewed by asker 01/03/12 5:54pm PST
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Accountant Man
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12/30/11 7:26am PST
The solution
Shareholder distributions are the distributions of the profits, so they are Equity items. I prefer to setup a SH Dist Equity account for each SH, and have it as a sub-account for the Equity Account; 1 for each SH, showing the allocation of income/loss.
This is the AAA, and each SH should have one. The total AAA is the accumulated profits, losses, contributions, and distributions(usually called retained earnings).
If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)
01/03/12 5:52pm PST
not exactly the info needed to resolve for this 100% SH situation but will research further. thanks.
