Common questions about the Balance Sheet and Capital Account for partnership returns in Lacerte

1. From the Settings menu, select Options.
2. Select the Tax Return tab.
3. In the Sections list, select Federal Tax Options.
4. Select the arrow beside Balance Sheet Rdg. to Cash.
5. Select Yes to create a rounding amount which is added to or subtracted from Cash. OR select No to create a rounding amount for Other Assets or Other Liabilities, which forces the Schedule L to balance.

1. Open Screen 24, Balance Sheet.
2. Remove any entries for ending accumulated depreciation, accumulated amortization, and accumulated depletion.
3. Select the Forms tab.
4. In the Form list, select Worksheets.
5. Make sure the program's calculation of ending accumulated depreciation, accumulated amortization, and accumulated depletion matches the trial balance amounts.
6. If the accumulated depreciation account is correct, open Screen 24, Balance Sheet.
7. Remove any entries for ending retained earnings or capital account.
8. Review any M-1 adjustments. The program calculates Net Income Per Books by starting with tax return income and then adding or subtracting M-1 adjustments.
9. Make sure the Net Income Per Books matches the trial balance amount.
10. Select the Forms tab.
11. In the Form list, select Worksheets.
12. Make sure the program’s calculation of ending retained earnings or capital account matches the trial balance amount.

Note: The program does not calculate most of the balance sheet accounts. If discrepancies exist in any of these accounts, correct the amounts on the appropriate input line in the Balance Sheet input screen

Solution #1: To generate the Capital Account Reconciliation for all Partnerships:

1. Click on Settings.
2. Click on Options.
3. Click on the Tax Return tab.
4. Scroll down to Federal Tax Options section.
5. Locate the Capital Account Reconciliation option.
6. Select Per Partner from the drop down menu.

Solution #2: To generate the Capital Account Reconciliation for a specific Partnership:

1. Navigate to Screen 3, Miscellaneous Information.
2. Scroll down to the User Option Overrides section.
3. Enter a 3 in Capital Account Reconciliation: 1= Condensed, 2= Expanded, 3= Per Partner (O)