Drawings

[Cam Ellison]

Chris Dennis wrote:
> Hello folks
>
> I run a small business and use GnuCash to do the sums.
>
> What's the best way to account for 'Drawings', i.e. the money that I 
> take out of the business?
>
> I've been using an account called Equity:Owner's Equity:Drawings, and 
> transferring money from my bank account and petty cash as required. 
> That's fine, but the amount in the Drawings account just keeps getting 
> bigger and makes the balance sheet meaningless.
It should be expensed - this is not equity; it's cash flow.  An easy way 
to deal with this is to use the Edit function to change the 
superordinate account to Expenses.

Cheers

Cam