Bright Accounts Production supports partnership entity types. Partnership accounts have some requirements that differ from company accounts, particularly when partners join or leave during the accounting period or when profit needs to be allocated between partners.

Handling partners joining or leaving mid-year

If a partner joins or leaves during the accounting period, the period may need to be split into sub-periods so that profit can be allocated correctly between the partners.

For each sub-period:

1. Identify the partners who were members of the partnership during that period.
2. Calculate the appropriate profit allocation for each partner.
3. Record each partner's profit share using the relevant partnership nominal codes.
4. Where required, post a journal to allocate the profit to each partner's capital account.

This ensures that the accounts reflect the correct profit allocation based on the period each partner was involved in the partnership.

Directing retained profit to partners' capital accounts

Where profit is allocated to partners' capital accounts, post the relevant profit allocation journals to each partner's capital nominal code.

These nominal codes are typically located within the equity section of the chart of accounts.

Correctly posting the allocation ensures that each partner's balance is reflected correctly in the Statement of Financial Position.

Adding a partners' current account note

A partners' current account note can be included in the financial statements using Notes to the Accounts.

To create the note:

1. Add a user-defined note through Notes to the Accounts.
2. Enter the relevant information for each partner.
3. Include the partner's opening balance, drawings and closing balance.

The current account note is entered manually and does not automatically populate from the Trial Balance.

Nominal codes for drawings

Drawings should be posted to the appropriate drawings nominal code for each partner.

When importing a Trial Balance, check that each partner's drawings codes are mapped to the correct Bright Accounts Production nominal group.

Incorrect mapping can result in drawings being presented incorrectly in the accounts.

Contact Support

If you are unsure how to handle a partner change, profit allocation or nominal code mapping, contact Bright AP Support before making manual adjustments.

When contacting Support, provide:

• The partnership type
• Details of any partners joining or leaving during the period
• The relevant accounting period
• Details of the profit allocation required
• Any nominal codes or Trial Balance mappings being used