1. Create "Dividends Payable: X" liability account for each partner
2. Create an "Allocated Dividends" equity account (or just use the "Owner's Equity" account that is already created)
3. For each dividend debit the (2) and credit (1)
4. 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

https://community.waveapps.com/discussion/2463/properly-recording-owners-equity-and-drawings

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.

https://accountants-community.intuit.com/questions/277168-how-to-split-up-retained-earnings

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• 14 days ago by vince