Bookkeeping for Partnerships
Whenever I get a new client for bookkkeeping, it generally is because they are in a mess with tax time approaching. Will bookkeeping ever be valued!!
Anyways, I have a very nice couple who are in a general partnership, no written agreement ( big mistake because they are disolving for 2011).
They have tons of receipts. They pay expenses from the business account, business credit card, cash , personal account and personal credit cards, anywhere there were funds at the time as cash flow has been difficult. They have no bookkeeping records set up at all.
I am sorting through the expenses and categorizing accordingly. My concern is the expenses that were paid personally and not have been reimbursed. Do these go on line 9943 of the T2125 according to who paid then. Also, does each partner's vehicle expenses go on line 9943 as well? I guess I am going to have to ask them who paid each cash receipt as there is no indication who paid them.
Any advice to assist besides my questions would be appreciated.
Sorry I don't have any experience with partnerships. :0(
I do have a chat on closing a partnership
, but it is from the bookkeeping not tax perspective.
About all I can do is point you to these CRA references:
Partnership information return
Vehicle expenses definitely go on Line 9943. There is a section on page 3 for reporting the expenses not reimbursed by the partnership ... as you probably know, so I'd say yes to your question as well.
Probably best to speak with someone from CRA.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.