S-Corp Distributions and GNUCash

[Christopher Blunck]

Hello-

I was wondering how to handle distributions from an S-Corp to owners in GNUCash.

From an accounting standpoint a distribution from an S-Corp is usually handled by:
  1.)  Decreasing  Assets:Checking Account  by some amount
  2.)  Decreasing  Equity:Retained Earnings by the same amount

Since GNUCash doesn't have an explicit "Retained Earnings" account I don't know how to journal this transaction.

I created an Equity:Distributions account but then the Balance Sheet shows a negative value for Equity:Distributions and that "doesn't smell right."

Can someone enlighten me on how to best approach this situation in GNUCash?  If I'm misunderstanding the accounting please feel free to correct me.  And if there is a "GNUCash way to do this" that I simply don't understand please share!  :)


Thank you for your time,

-c

--
Christopher Blunck
chris at thebluncks.com