Help with Partners' Capital Acount!

Forum|Forum|1 year ago
August 7, 2025
3 replies
68 views

Hi,

I am using TT Business Windows version. I cannot seem to get my Balance sheet right, because I do not understand what to enter in the Beginning Balance for Partner Capital Accounts. Does this amount reflect contributions to the LLC by the partners? Or how much was distributed to the partners? Or something completely different?

My LLC is a partnership of my wife and myself only, with a 49/51 split in ownership. We have no inventory as we are a service company (Contractor). We started the year with a cash balance of app. 9k, and ended the year with a cash balance of app. 22k, according to bank balance statements. Does that matter?

I have been using TT for many years, but I am new to the business version and forms. Hopefully this is a simple problem that I just lack the knowledge of. Any help would be appreciated.

TurboTax Business Windows

Mike9241

Level 15

for balance sheet purposes the beginning balance is the balance of the partner's capital accounts as of the end of the last year. (each partner's k-1 would reflect their share of this)

this should equal the total assets reported last year (or did you just start the activity in 2024) schedule L line 14 column b less liabilities sum of lines 15 to 20 column b.

anything put in after that is a contribution (again each partner's contribution would be reflected on their k-1). similarly, anything distributed in the current year is a withdrawal/distribution. income adds to the partners capital accounts while losses and deductions reduce it.

these are made up numbers assuming the business started in 2024 and purchase no depreciable assets

how m-2 might look

line 1 =0

line 2a = 9K

line 3 =30K

line 5 = 39k

line 6a = 17k

line 9 = 22K

so schedule L would show 22K of cash and 22 K balance of partners' capital accounts

this assumes that column d schedule L lines 2 through 13 and 15 to 20 are properly zero

Mike9241

RicsterXAuthor

Level 2

Thank you Mike! That was indeed helpful, but I do have one more question.

What is the impact of the TT question about entering the beginning and year end checking account balance?

And this is my second year filing FYI.

Mike9241

Level 15

What is the impact of the TT question about entering the beginning and year end checking account balance? as a guess for reconciliation purpose to make sure that something affecting cash has been missed

beginning cash should be the same as last year's ending cash

Mike9241