Distributing profits in a trust in AO Classic

This support note applies to:

AO Classic General Ledger (AU)

Article ID: 25171

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