Although I have dealt with some partnerships previously I have just encountered a problem that I have not met before and should be grateful for readers’ advice.
I am dealing with a professional partnership. All of the normal ‘communal’ expenses are paid from the partnership bank account.
However the partners appear to have agreed that their ‘personal’ partnership expenses are paid for out of their own pockets. For example some of the partners’ spouses carry out secretarial duties for them when they are working from their homes.
Furthermore to avoid arguments about what cars they use the costs of these are paid personally to avoid say two of the partners paying for the third’s luxury car.
My confusion is how I account for these expenses. The partners do not want them shown in the partnership accounts as the profits are split evenly between them...
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