Partner Distributions to Capital Accounts
At the end of the year we transfer all profit to each owner's capital account. On the balance sheet it appears correct. We use Partner's Distribution to move the profit from retain earnings to the capital accounts as you can see below. This makes the retained earnings zero at the end of the year.
But the issue I'm having is that on the Account Balances Report it shows the money being added to each capital account but then also deducts the partner distributions. So the total equity never goes up. The total equity should be $44,900.90.
Any advice on this would be greatly appreciated.