How to Create Profit Allocation Accounts

Hi

I’m preparing a set of accounts for a superannuation fund. I need to allocate shares of profit and tax payable into member accounts in the balance sheet.

What I need to know is how to set up accounts to allocate shares of profit AFTER the profit and loss shows the profit or loss. It’s similar to a distribution statement in a set of company accounts or in a trust. Where income is allocated to beneficiaries. Or dividends are declared to be paid.

Does anyone know how I can do that please?

Cheers

John

You can use either capital accounts creating a specific subaccount or a special account divided into shareholders.

In order to move from generic reteinded earning to the new accounts use a journal entry.

This an example of the sub-accounts under the capital accounts recommended by @Davide:

image

Hi Davide

Many thanks. I see that I can use Capital accounts and sub accounts. But I think that I will need to also set up a sub group in expenses as well.

Because

I am required to show the member and employer contributions as income in the Profit & Loss Account first. But I also need to show them AGAIN in the Capital Sub Accounts. So I will need to set up something like a sub group called maybe,Transfers to Capital accounts in the expenses section.So I can do journal transfers from the Profit & Loss Account to the Capital Sub Accounts?

Or is there some other way to achieve what I need?

ALSO

Is it possible to change the order that the various accounts appear in the Profit & Loss Account?
They are in alphabetical order which is generally OK with me. But when I create a sub group called, say, “Member Contribution Transfers” or “Contribution Transfers”, these appear in the middle of the alpabetical list of expenses. Which looks ridiculous

Thanks

Cheers

John.

Thanks Tony. I am following your suggestion

Now would you please see my reply to Davide

Thanks

cheers

John

Below are examples of how to structure the chart of accounts for a superannuation fund.

image

image

Hi Tony

This is exactly what I need but the “How to do it” escapes me completely.
Would you mind giving me a bit of an explanation on exactly where I need to go to make the changes please?

For instance, i see that you have edited the Operating Net Profit to be Operating Profit Before Tax. I can’t see where you would do that? Or where to add the heading Operating Profit After Tax?

Nor do I see how you edited the title of Capital Accounts to Members Accounts? Or what I’m supposed to do with Inter-Account Transfers? When I looked there, I saw that I can set up a new Inter-Balance transfer. But my only option was to select the Bank Account. I assume that I somehow add other accounts to the drop down box of accounts I can select from. But how please?

Sorry to be a nuisance. Yes I’m a CPA but I learned my accounting skills before computers were invented. This techie stuff goes straight to the keeper.

Select “New Total” - 0%20P%26L%20COA%20Headings

Under Settings > Chart of Account click Edit 0000000%20Bug%203

This Guide should be useful concerning the mechanics: https://guides.manager.io/9181.

Hi Brucanna

Many thanks.

My inner very non techie accountant was working. I thought Totals meant just that. Totals. Not somewhere I could edit or add things.

With kind regards,

John Harmer

Hi Tut

Many thanks. I will follow that. The guides are always very clear.

Cheers

With kind regards,

John Harmer

Hi Brucanna

I was going so well, too. Then it went wrong.

I need to create some new accounts in the Capital Accounts section. That i have now renamed Member Balances.as you described.

I first created an account called Member Contributions Member X. And allocated it a Code 1. That went wrong and i now only have a digit 1 that appears under the Equity group name. I can’t edit that??

Here’s what i want to set up

EQUITY

Member Balance
Withdrawal Balance year start
Employer Contributions
Member Contributions
Share of Income
Less Income Tax
Withdrawal Balance year end

Same for each member

Are you able to tell me how I achieve that, please?

Hi Brucanna

Oops that doesn’t make sense
Heading should be

Member Balances

Then the various accounts or each member all under the Member Balances heading