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tracyagardner
Level 2

Am I entering Owner's Draw correctly?

Hi @angelacct This is very helpful. I have an LLC, 2 partners. We each have our Equity account divided like this:

Partner1 Equity

--Partner1 Equity - Contributions

--Partner1 Equity - Distributions

 

Partner2 Equity

--Partner2 Equity - Contributions

--Partner2 Equity - Distributions

 

So at the end of the year, when i want to zero out the distributions (our "Draw" accounts), i would then create journal entries, with Debits to which accounts? I know to credit the Draw/Distribution accounts but i'm confused about the Debit.

Lavender
Level 1

Am I entering Owner's Draw correctly?

Hello!just wanna ask if I did this right thing...in the bank feeds i categorize it as owners pay and personal expenses..however when i try to run the balance sheet,it shows negative  amount and when i view it the transaction type is expense,is this correct?

 

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