There are two methods available for handling the accounting in the equity section of a set of accounts for a partnership. These options have implications for how you generate special purpose reports from the LodgeiT Reporting module.
Option A - Reflect only the closing balance of the partner - (watch the video)
Simple to handle in accounting software
Less line items mean less confusion for novice users
More tedious in the LodgeiT SPFR Reporting module
Won't support automated post-back method
Option B - Reflect all sub-accounts of the partners, including share of profit, capital introduced and drawings - (watch the video)
No need to make any manually value entries in LodgeiT
Provides granular account detail i.e. profit reflects in a profit account
Supports automated postback (coming to LodgeiT soon).
More tedious in the accounting software (unless there is auto-postback functionality from LodgeiT)
Requires adjusting entries to move prior year balances to an opening balance account for each partner