Trust Distributions

[Alex Hill]

This is more of an accounting Question then a specific GnuCash question, but could do with some info on how to structure it in GnuCash anyway.

I have a trust and am making monthly distributions to beneficiaries. Would I be right in doing the following:

Equity (Beneficiary 1)        Dr       x
Equity (Beneficiary 2)        Dr       y
Cash                                Cr                 x+y

(or seperate transactions for each distribution).

So in this this situation the equity accounts with have a Dr balance (shown as a negative in gnucash) during the year. Then at the end of the year I would offset these accounts against the P&L Summary when closing the books like so:

P&L Summary (temporary account used in closure)      Dr       x + y
Equity (Beneficiary 1)                                                 Cr                     x
Equity (Beneficiary 2)                                                 Cr                     y


Then any residual in the P&L summary account would be distributed in a similar fashion?

I think this is right, but am not quite sure.


Thanks,
Alex