Partnership and Sole Trader Chart of Account
The FC Silverfin Chart of Accounts has been set up so that we have a different nominal ledger code for the main items for capital/current account movements (see below) for up to 15 partners. The system can also cope with more partners using the suffixes (.001) to allow for up to 999 partners, but the majority of our client have 5 or less partners. Please note that this may not cater exactly for every partnership or sole trader that we act for, but we are first aiming to cater for the majority of our client base. If additional codes are needed than cannot be described as, e.g. drawings, then contact support.
Sole traders will also use the above codes, with the first code in each category being suffixed as - Sole Trader/Partner - 1
- Capital - depending upon the bookkeeping this may be either the opening balance or all capital accounts entries for that partner or client)
- Capital Introduced
- Repayment of capital
- Transfer of capital (capital) - from capital account to current account
- Current Account - depending upon the bookkeeping this may be either the opening balance or all current accounts entries for that partner or client
- Drawings
- Funds introduced (current) - By default Silverfin assumes all funds introduced by partners are recorded first in the current account and then moved to the capital account as needed
- Income Tax - if the partnership sets aside funds for the payment of partners' tax
- Interest on capital - running through the current account
- Life Assurance
- National insurance contributions
- Pension contributions
- Private use items
- Retirement annuity contributions
- Salary (also used for fixed profit share)
- Share of profit/loss - see below re Retained profit/loss
- Transfer of capital (current) - from current account to capital account
There is also a set of codes for Retained profit/loss. Whilst this is not a normal concept in partnerships with all profit belonging to partners, this code is occasionally used by clients that post the partner profit share themselves (as they need somewhere to post the other side of this entry). Silverfin does not map this code internally as it reads profit share (either through nominal codes or manual input - see below) directly into the Partner current account. As such, you will need to ensure that this nominal code does equal the profit for the year.