Trusts & Partnerships

Where the JobBag database is being run for a Trust or a Partnership, the beneficiaries (Trust) or partners need to have accounts set up in the Equity section of the ledger that reflect their entitlements in the business. Note that in Trusts and Partnerships, the profit of the enterprise must be distributed to the Beneficiaries/Partners, it can’t be retained within the trust. I.e. there should be no Retained Earnings in a Trust or Partnership.

At the end of the financial year (normally), the final profit is calculated and then distributed to the beneficiaries/partners by way of a General Journal:


Account  Report  Debit  Credit 
Beneficiary A Distributions (Partner A Share of Profits)  Balance Sheet 
37,500 

Account Structure for Trusts

In a Trust database, each beneficiary needs to have their own account structure:


Account Name  Account Type  Totaling Mode 
Beneficiary A Trust Distributions  Posting account  Period to Date, reset to the Opening Balance account 
Beneficiary A Closing Balance  Total Account  Period to Date, total accounts do not get reset, their balances are calculated from the accounts that add to them. 

Repeat this structure for each beneficiary.


Account Structure for partnerships

In a Partnership database, each Partner needs to have their own account structure:


Account Name  Account Type  Totaling Mode 
Partner A Share of Profit  Posting account  Period to Date, reset to the Opening Balance account 
Partner A Closing Balance  Total Account  Period to Date, total accounts do not get reset, their balances are calculated from the accounts that add to them. 

Repeat this for every Partner.



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