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I formed a Corporation on July 31/21 and have been farming as a partnership prior to this. We haven't transferred the inventory to the Corp from the partnership as yet but we sold partnership inventory in August under the Corp name. The bank then took the proceeds from that sale in the Corp and then transferred it to my partnership bank account and paid out an operating loan that was in place for the inventory which was feeder cattle. My ag Expert is still in the partnership name and I'm trying to get that money, that the bank transferred from the Corp to the partnership so my Ag Expert balances with the month end bank statement for the partnership from the bank.
Hi Daryl, what you'll need to do is set up a liability account on each set of books. On the Partnership, you can title it Transfers to/from Corporation, and on the Corporate books, you can call it Transfers to/from Partnership. Enter your transactions to the bank for each entity as normal, and then whatever belongs to the other entity can be posted to the transfer account. We worked through an example of an intercompany transfer on knowledge base article I've linked for you below.