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This business is regarding a Limited Liability Partnership (LLP)

  1. Would it be possible to make drawings from accumulated funds (aka Retained Earnings), shouldn't drawings be done from the partnership capital fund? Or any money taken out from accumulated fund be put up as dividends?
  2. The LLP is claiming that there is only one account for capital which is the "partnership capital fund" - any accumulated profits/losses would be included into this account however the audit report is reflecting the equity as follows:

Equity

Accumulated Funds $ 75,000
Partnership Capital Fund $ 75

LLP is saying that they have $75,075 of capital, but I'm saying they only have $75 of capital who is correct?

closed as off-topic by ChrisInEdmonton, Nathan L, Dheer, Pete B., Michael Oct 26 '17 at 12:24

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Questions about accounting are off-topic unless they relate directly to personal finance or investing from an individual's perspective." – ChrisInEdmonton, Dheer, Pete B., Michael
If this question can be reworded to fit the rules in the help center, please edit the question.

  • question is valid, I don't see any reason to close. Definitely not opinion-based, for one thing. – Rocky Oct 24 '17 at 15:57
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Retained earnings is different from partner capital accounts. You can draw the money however the partners agree. Unless money is specifically transferred to the capital funds, earnings will not show up there.

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