Hi All,

I was reading the Trust Distribution conversation above with Jxuereb &Eddiec  as informational source & wonder if he or any body else could expand on this as this is a new area for me also.
Issue is the profit was distributed to beneficiary's but the drawings are yet to be realised in the next financial period I have put my questions in brackets below.

Eddiec – you said – 1. P&L gets closed off to the beneficiary accounts as "share of profit", based on how the amounts have been distributed to each beneficiary.

(done)

2. When real cash is paid, the payment will simply be coded to the beneficiary accounts as "drawings".

(Have coded distributions to Drawings A/c, does it matter that cash is not paid until next period?)

Each beneficiary will pay tax on their share of the taxable income of the trust.  Be careful because the taxable income of the trust may not always be the accounting profit of the trust.

(can we turn this undistributed cash above from 09 period into equity instead) by way of subordinated loan type scenario)