Equity accounts and S-Corp distributions

[Christopher Blunck]

Hello,

I've been a rabid user of GNUcash for roughly 6 years now and I recommend it to as many people as possible.  I think it's really great tool!

I recently encountered an accounting situation and I can't figure out how to work through it in GNUcash.  I was hoping the mailing list could offer some suggestions or ideas about it...

In an S-Corp owners can take distributions from the company bank account.  I don't know how to journal that transaction in GNUcash.

I described the situation to an accountant and he said that one would typically decrease Assets:Checking and increase Equity:Distributions.  When I did that in GNUcash the UI showed me a negative number in Equity:Distributions.  I basically journaled a transaction that said "decrease $1000 from Assets:Checking and increase Equity:Distributions by $1000".

For starters ... is this the correct approach to take from an accounting standpoint?  (Is my accounting advisor correct?)

If this is the correct approach can 

-c

--
Christopher Blunck
chris at thebluncks.com