Accounting for investment from a business partner?

Question

What's the debit and credit side for partners monetary and equipment investment, also for the hours invested

Answer 1

Monetary investment:

    Debit Cash on Hand

    Credit One of the partner's equity accounts

Equipment investment:

    Debit Equipment account

    Credit One of the partner's equity accounts

Hours invested:

    This should be handled in the partnership agreement.  This is because partners are not directly compensated for their labor and, conversely, they are not credited for their labor.  Instead they "own" the profits which are distributed in accordance with the percentages specified in the partnership agreement.

Hope this helps

Jerry-the-bookkeeper