Section 706.810 - Unincorporated companies: Net worth1. To provide flexibility to the required entries recorded in the capital and drawing accounts, which flexibility is required because these accounts encompass the varied terms and provisions of partnership agreements of different companies operating under an unincorporated form of business organization, permissive wording is used for the required entries and the description of the items to be included in both the capital and drawing accounts. Despite the permissive language employed, it is intended that where permissive wording has been used to describe items included in both of these accounts, if an item by the terms or provisions of the particular company's partnership agreement excludes such item from one of the accounts, then such item must be included in the other account both for regulatory purposes and for purposes of this uniform system of accounts. The required information related to a particular item must be recorded in the same account in which the item has been recorded.2. Once an election has been made as to which of the two accounts must contain the item in question, the company must be consistent in the inclusion of the item in the same account in future years unless a new partnership agreement has been made or the old partnership agreement has been amended making such consistency incompatible with the new or amended partnership agreement provisions.3. Neither a provision nor a requirement has been expressed for an annual closing of a particular person's drawing account to his or her capital account. This has been omitted to allow flexibility to these accounts in accordance with the possible terms or provisions of partnership agreements of the various companies. It is to be clearly understood that a person's capital balance must be the net amount of the combination of his or her drawing and capital account balances both for financial statement purposes and for purposes of NAC 706.558 to 706.855, inclusive.4. Amounts payable to the proprietor, partners, or other persons maintaining an ownership interest in the company, as fair and reasonable compensation for services performed must be charged to the appropriate administrative, operation or other functional expense accounts.5. A capital account must be used when the organizational form of business is that of a partnership, sole proprietorship, joint venture, association, or any other form, other than an incorporated company. It must include the capital contributions made or earnings retained in the business by the persons who own the company. Subaccounts must be maintained for each person having an ownership interest in the company and any entries recorded must be so detailed and described to permit ready identification including source, analysis and verification of all relevant facts. This account may be credited or debited as appropriate for additional capital contributions and for the results of annual operations, gain or loss. The basis upon which the distribution of gain or loss affects the various ownership interests may be noted and supporting records must be maintained detailing all facts and factors which such distributions affected.6. The withdrawal account includes all withdrawals of capital and personal expenses paid by the company on behalf of persons having an ownership interest in the company. Subaccounts must be maintained for each person having an ownership interest in the company and any entries recorded must be so detailed and described as to permit ready identification, including source, analysis and verification of all relevant facts.Nev. Admin. Code § 706.810
Taxicab Auth., Uniform System of Accounts Reg. §§ 361.01 -363, eff. 12-24-70; A 11-16-79