S-Corp Distributions and GNUCash

[Anthony Dardis]

(a) you can create a Retained Earnings account

(b) are there two sets of books involved here, one for the S-corp, one for  
you? The distribution from checking for the S-corp should (?) reduce  
equity for the S-corp; but then you are receiving the distribution, so  
that comes in to *your* books as (I'm guessing) income (so for you, a  
transaction from income to whereever the money actually ends up)?




On Wed, 24 Nov 2010 21:34:23 -0500, Christopher Blunck  
<chris at thebluncks.com> wrote:

> 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
>
>
>
>
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