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Income allocation

At the end of every financial year, you might need to allocate income to the beneficiaries of a company, partnership or unit trust. MYOB can be set up for handling this type of income distribution.

Detailed below are the steps involved with setting up income allocation by modifying your accounts list then determining how you want to distribute the income.

This can be a complex area and the scenario below might not suit your needs. You should always seek financial advice regarding the best solution for your circumstances.

Create equity accounts for each person

For each person you’re allocating income to, ensure you have all the necessary accounts in the Equity section of your accounts list. Here’s an example of accounts set up for a partnership:

3-0000 Equity

 3-1000 John Smith

   3-1010 JS - Retained Earnings
   3-1015 JS - Capital Contributions
   3-1020 JS - Current Earnings
   3-1025 JS - Drawings

3-2000 Rachael Smith

   3-2010 RS - Retained Earnings
   3-2015 RS - Capital Contributions
   3-2020 RS - Current Earnings
   3-2025 RS - Drawings