Hi There
Could any one please advise
I need to allocation distributions to beneficiaries in a Trust.
What are the debits and credits in this case?
And are the balance sheet or Income statment accounts?
Hi There
Could any one please advise
I need to allocation distributions to beneficiaries in a Trust.
What are the debits and credits in this case?
And are the balance sheet or Income statment accounts?
I would imagine that the accounting treatment would be very similar to that of Partnership Accounting - have a look at this thread in which I outlined a detailed procedure.
Substitute the word "Partner" with "Beneficiary".
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
Hi,
If it is a R100 cash distribution to Beneficiary A:
Dr. Distributions paid to beneficiaries (B/S:Equity) 100
Cr. Cash (B/S: Assets) (100)
If it is a R100 distribution to Beneficiary A on loan account:
Dr.Dr. Distributions paid to beneficiaries (B/S:Equity) 100
Cr. Loan Account: Beneficiary A (B/S: Liability) (100)
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