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pcbbusinessllc
March 19, 2023
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How to record an investment in a joint venture?

  • March 19, 2023
  • 1 reply
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I am single member LLC. My LLC invested in a small percentage of an oil well joint venture. I have set up a Fixed Asset, Depletable to account for the initial investments.

 

How should the incoming monthly distributions be categorized?

 

Example:

LLC paid the managing JV $5K in August for a working interest.

Each month, the JV sends a distribution payment depending on how the oil wells perform...let's say $200 distribution back to the LLC in September.

Best answer by Rustler

In the chart of accounts, create an income account and title it investment income or JV investment income

Deposit the funds received and use the JV investment income as the source account for the deposit

1 reply

Rustler
RustlerAnswer
March 21, 2023

In the chart of accounts, create an income account and title it investment income or JV investment income

Deposit the funds received and use the JV investment income as the source account for the deposit

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