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How do I account for capital contributions in an LLC?

I keep records for a 6-member LLC. When I deposit a check and categorize it as "Capital Contribution-Member X", the amount is subtracted from that person's capital account. So, should equity accounts/capital account accounts show as negative amounts/credits?

Answers

  • Tom YoungTom Young SuperUser ✭✭✭✭✭
    Since Quicken has no equity/capital accounts available for overt manipulation - it's a "personal" financial accounting system - you're ill-advised to use Quicken in this case.
    Apparently you're using Other Liability Accounts as a stand-in for individual partner's capital accounts. You're wrong that depositing a check subtracts from the individual's "capital" Account, it adds to it.  Quicken does show liability Accounts as negative numbers.  A contribution to a "capital" Account is the "credit" that accompanies the "debit" to the checking Account.
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