Fix Balance Sheet to Remove Old LLC Equity Account Balances
- November 3, 2024
- 1 reply
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Hello,
I am looking for advice on how to remove some old equity accounts associated with a LLC that is no longer active. What accounting entries or other methods should I consider to remove all accounts associated with "A LLC" while maintaining an accurate Total Equity number?
In the past, I foolishly tried to account for A LLC (a separate entity) within another QB Online account, in attempt to be able to accurately reflect correct balance sheet numbers when running a balance sheet report by business. It did work for a while, but then it got too messy to keep up with. The lesson I learned was to get a new QB for each entity.
Below and attached is a sample of my current accrual Balance Sheet for all dates. I want to remove (make inactive) all "A LLC" equity accounts from my Balance Sheet, as this company no longer exists.
The accounts I want to fix/remove are below in RED.
Total Assets, Total Liabilities, and Total Equity account balances appear to be correct to me.
| Balance Sheet | |
| All Dates | |
| Total | |
| TOTAL ASSETS | $ 4,890,238.29 |
| TOTAL LIABILITIES | $ 3,962,237.31 |
| Equity | |
| Opening Balance Equity | $ 151,892.35 |
| Owner's Equity | $ 1,249.49 |
| Contributions to A LLC | $ (588,993.02) |
| Contributions to B LLC | $ 47,005.00 |
| Partner Contributions | |
| Joe | $ 1,615,827.93 |
| Total Partner Contributions | $ 1,615,827.93 |
| Partner Distributions | |
| Joe | $ (1,117,780.83) |
| Total Partner Distributions | $ (1,117,780.83) |
| Taxes Paid | $ (261,261.00) |
| Total Owner's Equity | $ (303,952.43) |
| Owner's Equity - A LLC | |
| Partner's Equity | |
| Joe | $ 588,993.02 |
| Distributions | $ (537,400.00) |
| Total Joe | $ 51,593.02 |
| Total Partner's Equity | $ 51,593.02 |
| Total Owner's Equity - A LLC | $ 51,593.02 |
| Retained Earnings | |
| Net Income | $ 1,028,468.04 |
| Total Equity | $ 928,000.98 |
| TOTAL LIABILITIES AND EQUITY | $ 4,890,238.29 |
Any attempt I've made with Journal Entries to clear this up has resulted in account balances not matching, or the Total Equity not reflecting accurately.
Thanks in advance for your help!