I am managing a multi-member LLC with two members. I have set up equity accounts for myself and my partner with sub-accounts for draw, equity, and contributions.
What I don't understand are the actual entries I will make to these accounts to properly account for the first draw we will be taking from the company next month. I also want the company to pay the partners back for some initial contributions and don't understand what entry or entries to make for that either. I cannot find any resources specific to multi-member LLCs.
I have seen the term "cash account" thrown around but I don't know how to put one in the chart of accounts.
But so I can see if I understand, I need a cash account. Then I credit Cash, debit the appropriate draw accounts. Does the cash account just represent the total amount of money drawn out of the business from all partners?