Hi userlh_gardenservice Thanks for confirming. It's our understanding that when an owner withdraws cash from the business/money taken from the profit this would be classed as a release of equity.
To account for the withdrawal you'd have to create an equity account within the chart of accounts;
Transactions > Chart of accounts > New > In the account name field enter a name such as Owner withdrawal or something similar > In the account field select Equity > in the detail type field select Owner's Equity > Save.
You would then create a journal debiting the retained earnings account and crediting the equity account that you created above for the amount that you're withdrawing.
You would account for the actual payment to yourself from the business account by creating an expense with the relevant date, bank account and amount, in the category column you would select the equity account you created above and in the amounts are column select No VAT.
Please note that we're not accountants and we strongly recommend that you consult with an accountant to ensure that the steps outlined above are the correct procedure for accounting for owner cash withdrawal.
