Accounting for shareholder dividends in a partnershiphttps://www.lukeko.com/7/accounting-for-shareholder-dividends-in-a-partnership 0
- Create "Dividends Payable: X" liability account for each partner
- Create an "Allocated Dividends" equity account (or just use the "Owner's Equity" account that is already created)
- For each dividend debit the (2) and credit (1)
- Each time a partner cashes out debit (1) and credit the company's bank account
You'll need a liability account called "Dividends Payable" for each of those shareholders, using the "Due to You and Other Business Owners" account type
Set up each partner with their own Equity accounts: Capital Contributed, Distributions, Income/Loss. Then after the year is closed adjust the retained earnings(of the entire company) into the separate Income/Loss accounts.