There are two methods available for handling the accounting in the current liability section of a set of accounts for a trust. 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 beneficiaries (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 for the beneficiaries, 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