Where do I enter retained earnings on Form 1065 Schedule L?

Forum|Forum|6 years ago
December 7, 2019
1 reply
47 views

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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Best answer by IRonMaN

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

IRonMaNAnswer

Level 15

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

Slava Ukraini!

A

awilliamsjrAuthor

Level 2

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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