LLP

• Why am I getting an Unknown member on the Capital and Current accounts report?

This occurs when postings have been made to a member that does not exist. The most common example of this is where a member has left the LLP in the comparative year but there is a balance b/fwd for that member in the current year. The balance on the members capital account will need to be cleared down to zero in the year that the member left by doing a journal to move the balance from the members current account to either debtors, creditors or to the remaining members, resulting in a balance c/fwd of nil.

• How do I post a disposal of a fixed asset?

In this example we will assume a Motor car costing £10,000 has been disposed.

Credit account 525/3 (Motor vehicles - Disposals) with the original cost, £10,000

Debit account 525/23 (Motor vehicles - Eliminated on disposal) with the depreciation to date, say £3,000

Post the balance of the above to account 392/14 (Motor vehicles - Profit/loss on sale of assets), £7,000

The actual sale proceeds will also be posted to account 392/14 (Motor vehicles - Profit/loss on sale of assets) say £8,000 (the debit entry for example being to the bank account)

This will arrive at the profit on sale of motor car of £1,000

• How do I set up the Members and their share of profit?

Setting up the Members

Select Edit | Members

Click New, then click the magnifying glass next to the Member box. This will display a list of existing people in the database. Highlight and select the new member if they appear in this list, or click New to set up a new person in the IRIS database.

Enter the dates the members started or left the business if relevant and the accounting order number.

All members must be allocated an order number, unless you are setting up a joint capital account.

The Accounting Order field is used to determine:

the order in which the members appear on the information sheet,

which group in the accounts chart the member's salary and so on, is posted to.

Entering the Members Share of Profit

Select Edit | Members Profit Shares

Select Shares

You will be asked to enter the Date member net profit shares are to be effective from, if you have not entered start dates for the members this field can be left blank and shares will be effective from start. If start dates were entered for the members enter that date as the date the shares are to be effective from.

You will then be asked to specify the profit shares. If the profit is shared equally select Equal and click OK, if the profit is not shared equally select Specified and enter the percentage in the field provided.

Set the profit share for each individual member.

Click Shares to display the partners profit allocation.

The screen shows the % profit split.

• All active members must be allocated a share of profit even if they receive zero percent this must be specified by ticking the Zero field for that member.

• How do I set up a joint capital account?

Joint capital account can only be set up for two members. You can have a three person LLP where two members share a joint capital account and the third person receives an allocated percentage of profit.

Only one member in a joint capital account will have an order number, the second (joint) member will not be allocated an order number.

Setting up the Members

Select Edit | Members

Click New, then click the magnifying glass next to the Member box. This will display a list of existing people in the database. Highlight and select the new member if they appear in this list, or click New to set up a new person in the IRIS database.

Enter the dates the members started or left the business if relevant and the accounting order number.

Allocate order number one to one of the members, the second (joint) member will have no order number.

Entering the Members Share of Profit

Select Edit | Members Profit Shares

Select Shares.

You will be asked to enter the Date member net profit shares are to be effective from, if you have not entered start dates for the members this field can be left blank and shares will be effective from start. If start dates were entered for the members 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 member with order number 1.

Select the Joint capital account field and either enter the identifier of the joint member or click the magnifying glass to display the joint member, click OK.

Select Equal if profits are to be shared equally or Specified and enter the percentages for each member.

The screen shows that from the start of the business there is one member sharing one hundred percent of the profit.

Click Shares to display the joint capital account.

The screen shows the two members together and that the type of member is Joint.

• How do I enter a change in the Member profit share allocation?

In this example there are two members sharing the profit 45:55 from the start of the business. However for the year ended 31 May 1999 the profit is to be shared equally.

Select Edit | Members Profit Shares

IRIS will display the current profit share details, select New date.

IRIS will ask you to enter the Date member net profit shares are to be effective from, if the share allocation has changed from one accounting period to the next, enter the date as the first day of the accounting period.

You will be taken to each of the members in turn to enter their profit shares. If the profits are shared equally select Equal and click OK, if the profit is not shared equally select Specified and enter the percentage in the field provided.

The screen will display the new profit share.

Click Shares to show the new profit allocation.

The screen shows that from xx/xx/xx, the members are sharing the profit equally (the date being relevant to the date of change).

• All active members must be allocated a share of profit even if they receive zero percent this must be specified by ticking the Zero field for that member.

• How do I change the member profit share when a new member is appointed?

When a new member joins a business you need to set up a new share date to reflect the inclusion of the new member into the profit allocation.

• All active members must be allocated a share of profit even if they receive zero percent this must be specified by ticking the Zero field for that member.

Enter the new member in Edit | Members

Click New, then click the magnifying glass next to the Member box. This will display a list of existing people in the database. Highlight and select the new member if they appear in this list or click New to set up a new person in the IRIS database.

Enter their date of appointment in the From field.

Enter the new members accounting order number.

The screen will display the existing members along with the new member.

Click Close, then select Member Profit Shares.

IRIS will display the existing profit share, select the relevant line, and select Shares.

Enter the new profit allocation for all members.

The screen now shows all of the current members sharing the profit.

Select Shares to see the percentage of the profit allocated to each member.

•  How do I change the member profit shares if a member leaves the LLP?

When a member leaves a business you need to set up a new share date to reflect the new profit allocation.

Select Edit | Members highlight the member that has left the business and select View. Enter the date the member has left in the To field.

Click Close, then select Member Profit Shares.

IRIS will display all share dates. Select the relevant line and select Shares.

Enter the new profit allocation for all remaining members.

The screen now shows all of the current members sharing the profit.

Select Shares to see the percentage of the profit allocated to each member.

• All active members must be allocated a share of profit even if they receive zero percent this must be specified by ticking the Zero field for that member.

• How do I enter actual amounts for the member profit share?

Select Posting | Post, select the post file you wish to work in. Click OK on the Review/Specify posting batch screen.

Click Advanced | Partner Profit Shares

IRIS asks you to confirm the start date of the current period, by displaying the previous period end date, then adding one day.

Click the magnifying glass to select an alternative account period end date.

Click OK to continue or Cancel to enter an earlier date or return to the posting screen.

The next screen will list the members with the calculated profit based on the percentages allocated in Edit | Members Profit Shares

You can change the profit for an individual member by highlighting the member and clicking Change Share.

Clicking the magnifying glass in the Actual field will either, insert:

the amount of profit share calculated by IRIS, or,

the balance of the remaining profit when actual amounts have been entered for all but the final member

Enter the amount you wish to allocate to this member in the Actual field.

If the figure is a profit the amount should be prefixed with a minus sign.

If you wish to change the profit allocation for all members, click Change All.

Click OK to save or Cancel to return to the Member net profit shares screen.

The next screen will show the current profit allocation for the business. The figures for the Total Profit/loss and the Share total allocated have to be the same.

Click OK to return to the Member Net Profit Shares screen.

• I am getting a rounding difference in my Sundry account, how do i move this?

A Rounding differences can be cleared by either making a journal adjustment to account 280, and the other side of the entry to any other profit and loss account, or, by changing the nominated rounding account for the client.  This can be changed by going to Posting | Rounding Accounts

The rounding account can also be changed for the whole chart by going into Setup | Accounts Chart | Amend Chart, select the EPST chart, then go to Rounding error accounts.

• How do I show the auditors / accountants name and address on the fly sheet?

A You will need to set the following alias:

FLY = FLO

To set the alias at client level (for one client only) select Edit | Report aliases

To set the alias at chart level (all clients attached to a specific chart) select Setup | Accounts chart | Amend chart, select the chart the client is using, select Output report (FDF) - chart aliases.

Click here for more help with output report aliases.

• How do I change the position of the wording on the fly sheet?

A You will need to be logged in as MASTER. Select Setup | Report options | Flysheet window position. See the help screens in each individual option for further help.

•  One or more of the members are not listed on the company information page.

The company information page will only list members in office at the time of signing the accounts.

If there are members in office at the time of signing that are not appearing, check the following screens:

Edit | Data Screens | Members | Members Changes Since Year End, check that you only have members entered on this screen that have actually left after the year end and not during the year, and similarly that members entered here were actually appointed after the year end and not during the year.

Also check that the members have not had an end date entered incorrectly. To check this, go to Edit | Members and remove any incorrect dates.

• Why are the following items not appearing on the Members report; Review of business, Dividends, Fixed assets?

The above items will be omitted from the members report if advantage is being taken of the small LLP exemptions. To disclose the above, select Edit | Data Screens | Small LLPs |  Report of the Members, select the items you wish to disclose.

• How do I omit or change the standard auditors paragraph on the members report?

Select Edit | Data Screens | Report of the Members | Auditors, leave the field provided blank to omit the standard paragraph or enter an alternative paragraph on the screen.

• Why are the following items not appearing in the accounts; Recognised gains and losses paragraph on Statutory profit and loss account, Historical cost profits note, Continuing operations paragraph on Statutory profit and loss account?

None of the above are required where accounts are prepared in accordance with the FRSSE (Financial reporting standard for smaller entities).

If you do not wish accounts to be prepared in accordance with the FRSSE, select Edit | Data Screens Small LLPs | FRSSE, leave the field provided blank.

• How do I post a revaluation of a fixed asset?

In this example, we will assume that a Freehold property has been revalued from £100,000 to £120,000.

Debit account 512/5 (Cost - freehold property) with £20,000.

Credit account 970/5 (No description - Revaluation reserve) with £20,000.

Data screens for the revaluation should be completed. These can be found in Edit | Data screens | Notes to Financial Statements | Balance Sheet Items | Tangible Fixed Assets|  Revaluation. Both the Information and Analysis of "Cost or Valuation" screens should be filled in.

• I have posted to different fixed assets groups but they are all coming out in the reports as Plant and Machinery and so on.

This is because the client is taking advantage of the small LLP exemptions.  If you wish to disclose the fixed assets with their actual group headings, select Edit | Data Screens | Small LLPs | Financial Statements, select Tangible assets and Depreciation accounting policy, to say that you require full disclosure.

• I have entered the Tangible asset depreciation rates but they are not appearing in the accounting policies.

Do you actually have postings in sub accounts of that account? for example, if you have set up a depreciation rate for account 526, check that you have postings to accounts 526/1 to 526/30 or 526/51 to 526/80. Please refer to the chart of accounts.

Have you entered a start date or end date for the policy? Check that the start or end date entered is relevant to the year for which you are generating the accounts.

• How do I transfer leased assets into owned assets?

Where the hire purchase agreement for an asset has been completed and the asset is to be transferred to the owned group make the following adjustments, an example for motor vehicles is given:

Debit, for example, 525/9, with original cost

Credit, for example, 525/59, with original cost

Debit, for example, 525/79, with accumulated depreciation

Credit, for example, 525/29, with accumulated depreciation

If there has been a charge for year posted, then this should also be moved in the same way as the cost and accumulated depreciation.

• Why are certain accounting policies not appearing, I have not said I want to omit them, or I have replaced them with my own policy but it is not appearing?

Accounting policies will only be generated if there are postings to the relevant account, for example, the Hp leasing policy will only be generated if postings have been made to the Lease/HP asset groups and the Stock policy will only be generated if there are postings to accounts 568 to 582.

You can not add to or replace a policy that isn't being generated, if you wish to enter your own policy use the freeform accounting policy screens.

• I have changed the Intangible asset description (account 503) from patents and licences but it is still coming out as Other intangible assets.

This is because IRIS is taking advantage of the small LLP exemptions.  To use the changed description, select Edit | Data Screens | Small LLPs | Financial Statements, select the option for full disclosure in the field against Intangible fixed assets.

• The description of goodwill on account 502 can not be amended.

• How can I prepare accounts utilising the small LLPs exemptions, without applying the FRSSE provisions?

Select Edit | Data Screens | Small LLPs | Financial Statements and select the option to claim ANY exemptions in respect of small LLPs.  Select the relevant boxes if you want full disclosure on the topics, Interest on bank loans, Staff, Intangible assets etc.

Ensure the option to prepare the financial statement in accordance with FRSSE has not been select on the data screen Small LLPs / FRSSE.