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Abdul Rehman
Abdul Rehman
October 1, 2019
Question

partner's equity vs partner's contribution accounts

  • October 1, 2019
  • 2 replies
  • 0 views

Hi All,

 

Please guide that what is the difference between partner's equity and partner's contribution accounts. When partner's equity will be used and when partner's contribution account will be used. Will be better if reply with an example. 

 

Also guide reg use of community. I have already posted this question but wrongly in US-Community. Now  posting it again in Global Community. Further guide that how can I review my posts? Please share proper link and navigations by which I may follow up my posts.

 

Regards,

Abdul Rehman

    2 replies

    JessT
    JessT
    October 1, 2019

    Thanks for tagging your question to Global, Abdul Rehman. 

     

    I can see that one of our top contributors, Rustler, has already discussed the difference between the partner's equity and partner's contribution accounts. Even though your other question was tagged to US, I believe the accounting principles of these account applies to all countries. However, it would still be best if you can reach out to an accountant in your place.

     

    I would also like to stress out this is more of an accounting question than a How-do-I question. For topics like this, we usually advise users to reach out to an accountant.

     

    About checking your questions, you can click your username or your picture. This will show you your profile, the questions you posted, and or the topics that you've participated in.

     

    This is the URL of your profile: https://quickbooks.intuit.com/learn-support/user/viewprofilepage/user-id/517840. I just noticed, you've got wonderful kids on your profile picture!

     

    If you have other questions about QuickBooks, please don't hesitate to go back to this thread.

    Abdul Rehman
    Abdul RehmanAuthor
    October 1, 2019

    Thanks Jesst,

     

    I have replied on Rustler's response. But again my that post is on US Community - will his answer be applicable for me (using international version). If yes then I am pleased to  continue there. If you can review that post then you may answer here in this post as per my respective version of QBO (i.e. Intl version). Otherwise I will wait for input in this thread.

     

    As, I am new, so please ignore my mistakes in communicating here. Once I get familiar, will participate in better way.

     

    Regards,

    Abdul Rehman.

    RenjolynC
    RenjolynC
    October 1, 2019

    Hello, Abdul Rehman.

     

    I have already answered your question on another thread. Please let me know if you need more help.

     

    Have a great day!

    Jen_D
    Jen_D
    February 3, 2022

    Thanks for posting here, @KseniaLit.

     

    While the old link was already archived. I'm sharing here again @Rustler's answer from the thread you are referring to. See this quoted answer:

     

    "For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

    [name] Equity (do not post to this account it is a summing account)


    >> Equity
    >> Equity Drawing - you record value you take from the business here
    >> Equity Investment - record value you put into the business here

     

    Then when you deposit personal funds into the business, you use equity investment as the source account for the deposit

     

    If  you take money, then write a check and use equity drawing as the expense (reason) for the check."

     

     

    See the following links to help you with your accounts:

     

     

    Post here again if you have additional questions or concerns. I'll be right here to help.

     

     

     

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