Partnership Profit

[Partnership]

A nonprofit received a check for the amount of $200,000 from Limited Partnership. An accountant booked a journal entry for limited partner profit like this:

Debit: Cash $200,000

Credit: XYZ LP comtribution (owner's equity account) $200,000

Is this correct?

[Bees Knees]

No.

A non-profit receiving income from a limited partnership is subject to unrelated business income tax. The check from the limited partnership could be booked through owners equity, but you will also have to deal with the income from the K-1 somehow and record it on the income statement of the non-profit.

[BOB W]

K-1

Was the k-1 from the partnership ISSUED to the non-profit or TO the partner of the LP?

Is the Non-Profit a Partner in the Partnership?

Hello anybody out there???????