id = "members-close.thirds-over-twelve-months"
title = "Three members at a third each, twelve monthly closes"
rule = "Each monthly close to the members MUST give each member their largest-remainder split of everything closed so far, to the minor unit, less what earlier closes gave them, so after every close each member's total is less than one minor unit from their exact share."
status = "CHOICE"
sources = [
  "26 U.S.C. §704(a)",
  "Treas. Reg. §1.704-1(b)(2)(iv)(b)",
  "DECISION (owner, 2026-10-13: largest remainder; D-10, 2026-10-16: counted from the first close) (wanderbooks rules.md B-13)",
]
tags = ["partnership", "close", "rounding", "book", "us"]

# A third each can't be written as decimal shares summing to one, so the
# members hold 33.33%, 33.33% and 33.34%. Twelve months, each closed to
# them: 100.00, 0.01, 0.02, 33.33, -0.05, 0.10, 1.00, 0.07, 0.01, 12.34,
# -5.00, 0.02 (141.85 in all).
#
# By hand, from the rule (the running total, its exact shares, the floors
# to the cent, then the left-over cents to the largest remainders):
#   January, 100.00: 33.33 / 33.33 / 33.34 exactly.
#   February, running 100.01: 33.333333 / 33.333333 / 33.343334; floors
#     33.33 / 33.33 / 33.34 leave a cent for the largest remainder, C's
#     .003334: 33.33 / 33.33 / 33.35, so February gives C 0.01.
#   March, running 100.03: 33.339999 / 33.339999 / 33.350002; floors 33.33
#     / 33.33 / 33.35 leave two cents for A's and B's .009999: 33.34 /
#     33.34 / 33.35, so March gives A 0.01 and B 0.01.
#   November, running 141.83: 47.271939 / 47.271939 / 47.286122; floors
#     47.27 / 47.27 / 47.28 leave a cent for C's .006122: 47.27 / 47.27 /
#     47.29.
#   December, running 141.85: 47.278605 / 47.278605 / 47.29279; floors
#     47.27 / 47.27 / 47.29 leave two cents for A's and B's .008605: 47.28
#     / 47.28 / 47.29, so December gives A 0.01 and B 0.01.

[setup]
currency = "USD"
fiscal_year_start = "01-01"
basis = "accrual"
rounding = "largest-remainder"

[[setup.accounts]]
code = "1000"
name = "Cash"
type = "asset"

[[setup.accounts]]
code = "3000"
name = "Capital, A"
type = "equity"

[[setup.accounts]]
code = "3001"
name = "Capital, B"
type = "equity"

[[setup.accounts]]
code = "3002"
name = "Capital, C"
type = "equity"

[[setup.accounts]]
code = "4000"
name = "Sales"
type = "revenue"

[[setup.accounts]]
code = "6000"
name = "Fees"
type = "expense"

[[setup.members]]
name = "A"
capital_account = "3000"
share = "0.3333"

[[setup.members]]
name = "B"
capital_account = "3001"
share = "0.3333"

[[setup.members]]
name = "C"
capital_account = "3002"
share = "0.3334"

[[events]]                      # event 1
date = "2026-01-10"
description = "January's sales"
lines = [
  { account = "1000", side = "debit", amount = "100.00" },
  { account = "4000", side = "credit", amount = "100.00" },
]

[[events]]                      # event 2
date = "2026-01-31"
description = "Close January to the members"
close = { start = "2026-01-01", to = "members" }

[[events]]                      # event 3
date = "2026-02-10"
description = "February's sales"
lines = [
  { account = "1000", side = "debit", amount = "0.01" },
  { account = "4000", side = "credit", amount = "0.01" },
]

[[events]]                      # event 4
date = "2026-02-28"
description = "Close February to the members"
close = { start = "2026-02-01", to = "members" }

[[events]]                      # event 5
date = "2026-03-10"
description = "March's sales"
lines = [
  { account = "1000", side = "debit", amount = "0.02" },
  { account = "4000", side = "credit", amount = "0.02" },
]

[[events]]                      # event 6
date = "2026-03-31"
description = "Close March to the members"
close = { start = "2026-03-01", to = "members" }

[[events]]                      # event 7
date = "2026-04-10"
description = "April's sales"
lines = [
  { account = "1000", side = "debit", amount = "33.33" },
  { account = "4000", side = "credit", amount = "33.33" },
]

[[events]]                      # event 8
date = "2026-04-30"
description = "Close April to the members"
close = { start = "2026-04-01", to = "members" }

[[events]]                      # event 9
date = "2026-05-10"
description = "May's fees"
lines = [
  { account = "6000", side = "debit", amount = "0.05" },
  { account = "1000", side = "credit", amount = "0.05" },
]

[[events]]                      # event 10
date = "2026-05-31"
description = "Close May to the members"
close = { start = "2026-05-01", to = "members" }

[[events]]                      # event 11
date = "2026-06-10"
description = "June's sales"
lines = [
  { account = "1000", side = "debit", amount = "0.10" },
  { account = "4000", side = "credit", amount = "0.10" },
]

[[events]]                      # event 12
date = "2026-06-30"
description = "Close June to the members"
close = { start = "2026-06-01", to = "members" }

[[events]]                      # event 13
date = "2026-07-10"
description = "July's sales"
lines = [
  { account = "1000", side = "debit", amount = "1.00" },
  { account = "4000", side = "credit", amount = "1.00" },
]

[[events]]                      # event 14
date = "2026-07-31"
description = "Close July to the members"
close = { start = "2026-07-01", to = "members" }

[[events]]                      # event 15
date = "2026-08-10"
description = "August's sales"
lines = [
  { account = "1000", side = "debit", amount = "0.07" },
  { account = "4000", side = "credit", amount = "0.07" },
]

[[events]]                      # event 16
date = "2026-08-31"
description = "Close August to the members"
close = { start = "2026-08-01", to = "members" }

[[events]]                      # event 17
date = "2026-09-10"
description = "September's sales"
lines = [
  { account = "1000", side = "debit", amount = "0.01" },
  { account = "4000", side = "credit", amount = "0.01" },
]

[[events]]                      # event 18
date = "2026-09-30"
description = "Close September to the members"
close = { start = "2026-09-01", to = "members" }

[[events]]                      # event 19
date = "2026-10-10"
description = "October's sales"
lines = [
  { account = "1000", side = "debit", amount = "12.34" },
  { account = "4000", side = "credit", amount = "12.34" },
]

[[events]]                      # event 20
date = "2026-10-31"
description = "Close October to the members"
close = { start = "2026-10-01", to = "members" }

[[events]]                      # event 21
date = "2026-11-10"
description = "November's fees"
lines = [
  { account = "6000", side = "debit", amount = "5.00" },
  { account = "1000", side = "credit", amount = "5.00" },
]

[[events]]                      # event 22
date = "2026-11-30"
description = "Close November to the members"
close = { start = "2026-11-01", to = "members" }

[[events]]                      # event 23
date = "2026-12-10"
description = "December's sales"
lines = [
  { account = "1000", side = "debit", amount = "0.02" },
  { account = "4000", side = "credit", amount = "0.02" },
]

[[events]]                      # event 24
date = "2026-12-31"
description = "Close December to the members"
close = { start = "2026-12-01", to = "members" }

[[expect]]
query = "entry"
entry = 2

[expect.values]
"4000.debit" = "100.00"
"3000.credit" = "33.33"
"3001.credit" = "33.33"
"3002.credit" = "33.34"

[[expect]]
query = "entry"
entry = 4

[expect.values]
"4000.debit" = "0.01"
"3002.credit" = "0.01"

[[expect]]
query = "entry"
entry = 6

[expect.values]
"4000.debit" = "0.02"
"3000.credit" = "0.01"
"3001.credit" = "0.01"

[[expect]]
query = "entry"
entry = 24

[expect.values]
"4000.debit" = "0.02"
"3000.credit" = "0.01"
"3001.credit" = "0.01"

[[expect]]
query = "balances"
as_of = "2026-11-30"

[expect.values]
"3000" = "47.27"
"3001" = "47.27"
"3002" = "47.29"

[[expect]]
query = "balances"
as_of = "2026-12-31"

[expect.values]
"3000" = "47.28"
"3001" = "47.28"
"3002" = "47.29"