RaquelFF
New Member

Get your taxes done using TurboTax

Hello,

 

It is important to understand the accounting equation:  Assets=liabilities+equity.

 

Additionally, every entry on the balance sheet should be entered twice.  For example, distributions will affect your assets and your retained earnings (equity).  Additional paid in capital, will increase your equity, and also your cash by the same amount.  If this is done properly, the balance sheet will balance.