How do I record a payment made by a S Corp on the behalf of a Partnership?
A bank account that belongs to the S Corp has been making payments that belong to the Partnership. I need to know how to record this and when. If you can please give me the journal entry framework to make to record these payments. Also can you please use the correct labeling for the accounts that will be used and explain when to use words that to me mean the same thing such as distribution vs draw, contribution vs investment, etc. This way the accounts will be correct. As far as when, when do I do this in some online searches I read to add up all payments and subtract it from revenue at the end of the year, can you explain how that works if it is and option. What would you recommend to record a JE as they happen or one JE at year end. Thank You!
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