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How do I setup a Joint Capital Account?

Article ID
ias-2760
Article Name
How do I setup a Joint Capital Account?
Created Date
18th May 2006
Product
IRIS Accounts Production
Problem
How do I setup a Joint Capital Account?
Resolution
A Joint capital account can ONLY be set between TWO Partners. Only ONE Partner in the Joint Capital Account will have an Order Number, the second (joint) Partner will NOT be allocated an Order Number. eg, 1 partner will be order number 1 whilst the other will have 0. To setup the Partners: Select, Edit | Partners Click on New,using the magnifying glass beside the Partner field. This will display a list of existing people in the database. Highlight and select the new partner if they appear in this list, alternatively select New to set up a new person in the IRIS database. Enter the DATES the Partners “started” OR “left” the business if relevant and the Accounting Order Number. Allocate Order Number ‘1’ to one of the Partners, the second (joint) Partner will have NO Order Number. Entering the Partners Share of Profit: Select, Edit | Partners Profit Shares | Shares You will be asked to enter the Date Partner Net Profit Shares are to be “Effective From”, if you have NOT entered “start dates” for the Partners this field can be left blank and shares will be effective from “start”. If “start dates” were entered for the Partners enter that date as the date the shares are to be effective from. You will then be asked to specify the Profit Shares. IRIS will display the details for the Partner with Order Number 1. Place a tick in the Joint Capital Account box and either manually enter the Identifier of the Joint Partner OR select the magnifying glass to display the Joint Partner, click OK. Tick EQUAL if Profits are to be shared “Equally” OR “Specified” and ENTER the “percentages” for EACH Partner. The screen shows that from the “start” of the business there is one Partner sharing 100% of the profit. Click Shares to display the Joint Capital Account. The screen shows the two Partners together and that the type of Partner is Joint. For further information please refer to the How to Create a Joint Capital Account for a partnership client Guide in the IRIS Help Centre.

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