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| In the following examples, we've set up our beneficiary accounts as equity accounts. But if you've set up your beneficiary accounts as a liability to the trust, you can still use the examples to report correctly in Statutory Reporter. |
Setting up the Chart of AccountsOpen the AccountRight or Essentials company file and set up accounts in the Equity tab of the Account List for each beneficiary. For example:
Distributing ProfitIf the trust has made a profit over the financial year, use a journal to distribute the profit to each receiving beneficiary's share of profit account. If you're using AccountRight version 2015.4 or later, to post a journal to the Share of Profit accounts, make sure that Entity Type in AccountRight's Profit/Loss Distribution window is set to Company. In Client Accounting, you only need to do one journal to distribute the profit and raise a liability for Unpaid Present Entitlements (UPE) at year end.
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| Where the trust has made a loss during the year, you won't need to process any journal at the end of the year to record the accumulated loss. Where the trust makes a profit in a future year, you will only need to perform a distribution journal for the net profit after accuulated losses have been deducted. |
Reporting Beneficiary FundsBefore you produce any reports, you'll need to map your accounts to the appropriate account group. To report profit and profit distributed correctly, we recommend the following setup: Description | Map to |
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All Beneficiary Accounts | Balance Sheet > Assets and Liabilities > Assets > Current Assets > Unpaid Present Entitlements (DR)
Balance Sheet > Assets and Liabilities > Liabilities > Current Liabilities > Unpaid Present Entitlements (CR) | Distribution to Beneficiaries | Balance Sheet > Equity > Retained Earnings > Current Year Earnings Profit and Loss Statement > Appropriation > Other | Retained Earnings | Balance Sheet > Equity > Retained Earnings > Retained Earnings | Current Year Earnings | Balance Sheet > Equity > Current Year Earnings > Current Year Earnings |
Assuming that all profits made by the Trust are distributed to beneficiaries, the bottom-line figure on the Income Statement will be $0 and the Current year earnings in the Balance Sheet will also have a zero balance. All amounts owing to beneficiaries including the Share of Profit for the year appears in Unpaid Present Entitlements on the Balance Sheet. |