To handle the owner's contribution, you need to set up an owner's draw account as an equity account. An equity account is used to track withdrawals of the company's assets to pay an owner. If you're a sole proprietor, you must be paid with an owner's draw instead of an employee paycheck.
To create an Equity account, here's how:
Click the Gear icon, then select Chart of Accounts.
From the Account Type drop-down, select Equity.
From the Detail Type drop-down, choose Owner's Equity.
Enter an opening balance.
Click Save and Close.
After creating the account, you can write a check from an owner's equity account to pay them.
You can read through these articles for detailed information: