When doing year end closing of an owners draw account for a sole proprietorship, should the other side of the entry go into owner equity, or owner capital? Looking at other sites, they almost use them interchangeably, but I know they are not the same. The COA for this company currently only has an owners equity, so I am guessing to use it. Just wondering if someone could clarify a bit for me. Thanks!
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Owner equity and Owner capital are the same, different names is all.
Yes equity drawing closes to equity (capital) with a journal entry
debit equity and credit drawing for the total in the drawing account
Owner equity and Owner capital are the same, different names is all.
Yes equity drawing closes to equity (capital) with a journal entry
debit equity and credit drawing for the total in the drawing account
Thanks A Bunch Rustler!
Good day Rustler,
Would this be the same for an LLC who files as an S Corporation?
how would that look in the journal entry?
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