cam at ellisonet.ca
Fri Mar 27 10:31:39 EDT 2009
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.
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