Am I "Closing the Books" correctly?

[Micah Carrick]

Hey folks,

This is largely more of a general accounting concept, but, since I'm not an
accountant, maybe you guys can tell me if I have this right. I'm doing the
books for my small business (partnership LLC) with GnuCash and want to see
if my strategy for "closing the books" at the end of the accounting period
is sound.

Rather than using Equity:Opening Balances, I have setup "Capital" and
"Draws" equity accounts for each partner:

Equity
    Doe, John
        Capital
        Draws
    ...

The balance in the Assets:Checking account initially came from each
partner's equity capital account in the amount of their capital
contribution.

To close the books I zero out the balance of every Expense:* account and
every Income:* account by:

1. Creating transactions to move those expense and income balances to each
partner's equity capital account according to their share.
2. If any of that income is to be retained by the company I create another
transaction from their equity capital account back to the Assets:Checking
account.
3. If the partners are taking a draw then I create a transaction from the
equity capital account to the equity draws account.

Does that sound about right?

- Micah