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April 24, 2024
Question

Where to record partner distribution not taken now

  • April 24, 2024
  • 1 reply
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If one partner decides to take a distribution, but the second partner chooses to not cash their check for the equal at this time how and where should I record that amount?

Do I credit the amount to the partner distribution account? Or somewhere else since they are choosing to not take their allocated amount at this time?

1 reply

April 24, 2024

I would record it to a distribution payable account (liability) which will be cleared when the partner does decide to take the payment.