IraS1@aol.com wrote:
> In a message dated 6/16/2004 6:02:39 PM Eastern Daylight Time,
> sdenman@bivio.com writes:
> We are
>   terminating our partnership and hem doing the withdrawal reports (we have
>   sold all holdings and will be issuing cash) I noticed the although I used the
>   same valuation date for all members the unit value was different for each
>   member. Also I ran a vaulation report using the same date and the value was
>   different from any member. Could you please explain why ( I know some member
>   is going to ask since many are married)?
>
>
> In all likelihood you are charging a withdrawal fee. You should not charge
> a withdrawal fee on the dissolution of a club. You will have to delete all
> the withdrawals and re-enter them.
>  
> If that's not the case, ask again.
>  
> Ira Smilovitz
Correct, charged each member a $10 withdrawal fee.  We need to keep some money in the account to cover future expenses, such as Bivio for 2004 tax reports, mailings of tax forms, etc.  How can this be handled?

It's fairly easy. First determine how much money you want to leave behind. Then enter an expense for this amount and pay it from the suspense account. Whether you charge this expense proportionally or equally by member should be part of your agreement. Run a new valuation statement and member status report the next day. (I don't remember what happens if you try to do it the same day as the expense is entered -- is the expense deducted before the valuation or after the valuation?) Then process all of your withdrawals for the full amount each member has invested.

 

You should be left with the appropriate amount in your bank or broker amount and a matching negative amount in the suspense account. When you actually spend the money, record the "expense" as a cash transfer from bank/broker to suspense.

 

Ira Smilovitz