This support note applies to:
-
AO Classic General Ledger (AU)
Following this information regarding how to distribute profits in a trust.
From within your general ledger client click the General Ledger drop down menu and select Income Allocation Definitions.
Ensure that account 500/02 is entered with 100% as the distribution percentage.
If no information exists in this window, press F4 to add a new line.
Journal entries then need to be entered as to distribute the profit to the beneficiaries:
|
|
Account |
Description |
DR |
CR |
|---|---|---|---|---|
|
Dr |
500/03 |
Distribution to Beneficiaries |
$XXX |
|
|
Cr |
501/02 |
Beneficiary No 1 Share of Profits |
|
$XXX |
|
Cr |
502/02 |
Beneficiary No 2 Share of Profits |
|
$XXX |
|
Cr |
503/02 |
Beneficiary No 3 Share of Profits |
|
$XXX |
|
Cr |
504/02 |
Beneficiary No 4 Share of Profits |
|
$XXX |
Account 500/03 and account 500/02 add to account 500/01 upon rollover, which is a balance forward account. So, the net effect is that they cancel each other out