awilliamsjr
Level 1
‎12-07-2019 01:23 AM

I am filing Form 1065 for an LLC filing as a partnership and I am having trouble getting the Schedule L to balance based on the balance sheet. The discrepancy involves Retained Earnings in the equity section. Specifically, this company has $44,013 in total Assets, $69,845 in total Liabilities, and the partners' total Equity is $69,646. The -$95,478 difference between Assets and Liabilities & Equity is listed on the balance sheet as retained earnings but I don't see anywhere on Schedule L to put this amount so it will balance. Any help with this would be greatly appreciated!

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IRonMaN
Level 15
‎12-07-2019 01:23 AM

Partnerships don't have retained earnings.  They do have partner equity accounts where income gets closed to each year.


Slava Ukraini!

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awilliamsjr
Level 1
‎12-07-2019 01:23 AM
Ok, at the end of 2017 net income was -$95,081 and there were 4 partners who each share 25% of profits/losses. So you're saying -$23,770.25 should have been closed to each partners' account at the end of the year? Can partners have negative equity account balances?
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sjrcpa
Level 15
‎12-07-2019 01:23 AM
Yes and Yes

The more I know the more I don’t know.
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awilliamsjr
Level 1
‎12-07-2019 01:23 AM
In November of 2018 one of the partners with a negative account balance decided he no longer wanted to be a member and left the company. How do I account for his equity account? It's current balance is -$16,415.69.
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IRonMaN
Level 15
‎12-07-2019 01:23 AM
Google is my friend but once in awhile Intuit can also be friendly:
https://accountants-community.intuit.com/search?filters%5Bcountry%5D=&filters%5Bproduct_display_name...

Slava Ukraini!
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