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Thread: Trusts: Allocations to beneficiaries

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    Trusts: Allocations to beneficiaries

    Hi There

    Could any one please advise

    I need to allocation distributions to beneficiaries in a Trust.

    What are the debits and credits in this case?

    And are the balance sheet or Income statment accounts?

  2. #2
    Platinum Member Neville Bailey's Avatar
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    I would imagine that the accounting treatment would be very similar to that of Partnership Accounting - have a look at this thread in which I outlined a detailed procedure.

    Substitute the word "Partner" with "Beneficiary".
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    Hi,

    If it is a R100 cash distribution to Beneficiary A:

    Dr. Distributions paid to beneficiaries (B/S:Equity) 100
    Cr. Cash (B/S: Assets) (100)

    If it is a R100 distribution to Beneficiary A on loan account:

    Dr.Dr. Distributions paid to beneficiaries (B/S:Equity) 100
    Cr. Loan Account: Beneficiary A (B/S: Liability) (100)

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