how to I record on the financial statements the purchase of a members interest in the llc?
Country/State/Province of question: missouri
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Yes. To be more specific, how do I record the excess paid to a member for his interest in a LLC?
The purchase of part of an LLC by a new member will result in additional equity into the partnership. Using double entry accounting, your debit would be to the checking account if cash were received (or equipment if that was received) and your credit would be to the "Member Name" Equity account. This is not income to the LLC and should not be included on the profit and loss statement at all. It belongs on the balance sheet.
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Over 10 years working with clients in the areas of personal finances and financial education.