Setting up a Joint Capital Account

Introduction

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

Only one partner/member in a joint capital account will have an order number, the second (joint) partner/member will not be allocated an order number. In a three person partnership the third person must have an order number to allocate shares.

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Setting up the Partners or Members

1. Select Edit | Partners or Members

2. Select New.

3. Click the magnifying glass next to the Partner or Member option.

4. If the person already exists on the database simply select them from the list.  

Alternatively:

1. 1. Click New to create a completely new person on the database.

   2. Click Next and enter the persons details.

   3. Click then Next again and select the client categories if used.

   4. Click Next.

   5. After reviewing the details select Finish.

   6. Enter a unique identifier for the partner or member.

   7. Click OK.

If you wish to create a business as a partner or member, when viewing the list of current people on the database, select the businesses option and de-select people.

5. Enter the dates the partners or members started or left the business if relevant and the accounting order number. Allocate order number one to one of the partners or members, the second (joint) partner or member will have no order number.

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Entering the Partners or Members Share of Profit

1. Select Edit | Partners or Members Profit Share

2. Select Shares.

3. Enter the Date partner or member net profit shares are to be effective from.

1. • If you have not entered start dates for the partners or members this field can be left blank and shares will be effective from 'start'.

   • If start dates were entered for the partners or members these will be displayed.

4. Click OK.

You will then be asked to specify the profit shares. IRIS will display the details for the partner or member with order number 1.

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

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

• Joint capital accounts will show that one partner or member is sharing the profit and not two as there is only one capital account.

7. Click Shares to display the joint capital account.

The screen shows the two partners or members together and that the type of share is Joint.

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