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garden-faux
Level 1

How do I make a cash withdrawal that won't show as an expense?

The owner of the company wants to withdrawal x amount of cash but we don't want it to affect the income statement.  How can I record this transaction without it showing as an expense?

Solved
Best answer December 30, 2022

Best Answers
BigRedConsulting
Community Champion

How do I make a cash withdrawal that won't show as an expense?

Don't use an expense account.

 

Instead, use an Equity account, as the owner is removing equity from the company.

View solution in original post

1 Comment 1
BigRedConsulting
Community Champion

How do I make a cash withdrawal that won't show as an expense?

Don't use an expense account.

 

Instead, use an Equity account, as the owner is removing equity from the company.

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