Me and my partner both have our own equity accounts with sub accounts for drawing and contributions. We recently recorded and deposited a profit into our bank account. Despite this our equity balances are the same amount we started the business with.
Equity account balances only change when you add or subtract directly to them. Even at year end when profit posts to retained earnings, it sits in retained earnings until you distribute it. Everything you describe is exactly how it should be
Equity account balances only change when you add or subtract directly to them. Even at year end when profit posts to retained earnings, it sits in retained earnings until you distribute it. Everything you describe is exactly how it should be
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