Paying yourself a drawing.

[Alan Hughston]

Hello Donna Pfeifer

The owners equity is a liability of the business.  So it is normally a
credit balance.  In other words the business owes D Pfeifer an amount.  In
the simplest scenario, that might be money in the bank so it looks like.

                             DR           CR
Cash At Bank     $100
Equity                                $100


If you reimburse yourself say $25 as a drawing, the entry for this would be

Cash at Bank                         $25
Owners Equity        $25

The balance of both accounts would now be $75  (100 minus 25).

I believe it is common practise to open an owners drawing account which is
expensed through P&L at balance date.

Hope this helps

-- 
Alan Hughston
0429 060953