What are the steps in QB to allocate last year losses into my 2 partner capital acct and also update retained earnings to zero it out. I'm not sure how to get this done.
There are 2 partners in my LLC. 50% owners each. We have a capital and draw account set up for each partner.
At the beginning of each year, my accountant would make a journal entry into each capital account. This entry would account for the losses from previous year. So for example on the first of each year there is a journal entry to the capital accounts for the amount declared on each partners k1 current year increase/decrease.
they also added the total net loss into the retained earnings account to zero out each year offsetting the automatic closing entry made by QB.
How do I do this? I don't know how to make this type of entry into QB and I'm stuck trying to figure this one out by myself. I do see it is a journal entry but I'm really not sure how to do this for all 3 accounts (2 capital accounts and the retained earnings)