Hi and thank you for the break down. I'm just wondering why I would need to use the owner's equity account at all. Is it not possible to debit the part of the expense that was used for business and payed with the business bank account, and credit the business account itself manually by using a journal entry? Or just adding it manually by creating a new bank transaction? Sorry, I'm really new at this. What is the significance of using owner's equity account and what effect will it have on the books? Thank you.