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    bb43's Avatar
    bb43 Posts: 1, Reputation: 1
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    #1

    Apr 5, 2010, 10:57 AM
    In kind contribution and owners equity
    I am one of three members starting a small business. 1 member has donated cash. The others have donated cash and/or time in lieu of cash. My the value of the time is known.
    I have two questions related to this

    1. How do I account for the value of the time, and,
    2. How do we show this as part of "Owners Equity"; or do we?

    Thanks

    BB43
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Apr 6, 2010, 04:20 AM

    1. How do I account for the value of the time, and,

    You have to agree with the other partners and put in a DOLLAR figure for the value of the time.


    2. How do we show this as part of "Owners Equity"; or do we?

    All of the above transactions have to be officially shown.
    There exists a CAPITAL Account
    for each partner.
    Determine what the exact value is for each partner.
    In each case this is represented by a combination of cash and value time in dollars .
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #3

    Apr 6, 2010, 11:17 PM

    I am having a bit of issue with this... what type of entity is this? i.e. a partnership, or you incorporated?
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