JE's to books after annual 1065 and K-1s are filed

[jritchie]

I am a tax preparer using ProSeries.   Clients often maintain their own Quickbooks Online and provide me their final annual Balance Sheet and Profit & Loss statements to use in creating the tax return for their small businesses. There are no 'off-book' items to consider, just these reports from their accounting software, which I do not have access to.   I just created a 1065 for a dual member LLC, each received a K-1 which allocated income and expenses based on their ownership percentages of 51% to Partner A and 49% to Partner B. 

Client is asking if they need to make journal entries to adjust their books for info from their respective K-1's so that their individual Equity Accounts on their Balance Sheet are adjusted for the allocation of non-deductible expenses (shown on K-1, line 18, code C) of Partner A=$155 and Partner B=$149. 

Do they need to make these entries in QBO and if so, what is the entry?

[IRonMaN]

They don't "need" to, but it sure makes life easier for their tax preparer.

[jritchie]

If the expenses are already booked and inside Net Income, which rolls to Equity, what is the entry to then? I've not had a client ask me this before. 

[IRonMaN]

If your ending equity is correct, then there isn't anything to record in Quickbooks.  I guess I missed what you were getting at on the first pass.

[PATAX]

Maybe print the individual partner basis statements in the Pro Series software and give it to your client?