S-Corp recieved 1065 k-1. How to show distributions (19A)? Out of balance by same amount.

[qtp-clayton]

My S-Corp client is a partner and we recently received the K-1 from the partnership. I am out of balance by the amount of my distributions from the partnership to the s-corp, box 19A. Any ideas?

[rbynaker · Accepted solution]

Through the magic of double-entry bookkeeping that means you're off somewhere else too.

Dr.  Cash
    Cr.  Investment in XYZ Partnership
        To record XYZ Partnership distribution

[abctax55]

delete

[qtp-clayton]

Hit me on the way home...where in the world is the other half of this? The answer...ownership interest wasn't reported on the balance sheet that was provided to me.

Thank you for your help. Now to see what else they omitted 🙂