- 91 -
balance sheet for 1999 showed, inter alia, the capital accounts
of the partners of ES4LP. The capital accounts schedule re-
flected cash distributions during 1998 and 1999 from ES4LP to
Mr. Stone’s estate of $629,67159 and $469,882, respectively. That
schedule also reflected negative adjustments to the respective
capital accounts of the remaining partners of ES4LP in such
amounts that all of the partners of ES4LP were shown to have
received pro rata partnership distributions during 1998 and 1999.
The capital accounts schedule reclassified such negative adjust-
ments as loans made to ES4LP from all of its partners, except Mr.
Stone’s estate.
The partnership return that CRSLP filed for 1999 reflected
that CRSLP did not make distributions during that year to any of
its partners. Schedule L, Balance Sheets per Books, of the
partnership return that CRSLP filed for 1999 reflected a yearend
asset of $1,369,116 identified as “Other investments”. A state-
ment attached to that return explained that such “Other invest-
ments” was an amount of $1,369,116 “Due From C. Rivers Stone”.
CRSLP’s trial balance worksheets for 1999 reflected the
following entries:
59As a result of bookkeeping entries, the $639,288 non pro
rata distribution during 1998 from ES4LP to Mr. Stone’s estate
that was reflected in ES4LP’s 1998 partnership return was re-
flected in the capital accounts schedule as a distribution to
that estate of $629,671.
Page: Previous 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 NextLast modified: May 25, 2011