cancel
Showing results for 
Search instead for 
Did you mean: 
Rbrooks1331
Level 1

Owners Equity vs Owners Capital when closing Owners Draw Account

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!

Solved
Best answer February 22, 2023

Best Answers
Rustler
Level 15

Owners Equity vs Owners Capital when closing Owners Draw 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

View solution in original post

4 Comments 4
Rustler
Level 15

Owners Equity vs Owners Capital when closing Owners Draw 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

Rbrooks1331
Level 1

Owners Equity vs Owners Capital when closing Owners Draw Account

Thanks A Bunch Rustler!

Rt1015
Level 1

Owners Equity vs Owners Capital when closing Owners Draw Account

Good day Rustler,

 

Would this be the same for an LLC who files as an S Corporation?

DS53
Level 1

Owners Equity vs Owners Capital when closing Owners Draw Account

how would that look in the journal entry?

Sign in for expert help
Ask questions, post replies & join our community of QuickBooks users.

Need to get in touch?

Contact us