PT 2000 key code? Call 1-800-999-9209.   Advertise here

Peachtree and Sage 50 Forums      

Go Back   Peachtree and Sage 50 Forums > Peachtree and Sage 50 software > Peachtree / Sage 50 Accounting forum

Thread Tools Display Modes
Old 07-31-2002, 04:55 PM
TexasLeg TexasLeg is offline
Registered User
Join Date: Jul 2002
Posts: 8
Posting Owners Draw in General Ledger

I am having trouble generating a General Ledger entry to record an Owners Draw transaction. Cash from the store's register was paid out to satisfy a non-business related service, contracted for by the Owner. When I used a General Ledger entry to credit "Register Cash"(a cash account)and then debited Owners Draw (an equity account) for the same amount, the result was a balanced transaction, but it shows that the Owners Draw account has been reduced. This in spite of the fact that I expected it to increase, to reflect the amount dispersed that should be seen as money going to the Owner.

Can anyone tell me how to correct this problem? I need to know how to make an entry that will reflect when monies are taken out of the firm, either by direct cash payment, or by check, that become part of the Owner's compensation.

Reply With Quote
Old 08-01-2002, 06:43 AM
fenWAY fenWAY is offline
Junior Member
Join Date: Jun 2002
Posts: 2
Lightbulb Credit Equity

You have just discovered Double Entry Accounting.

When you credited CASH you reduced the cash, this Reduction coincides with a reduction of the value of the Business. Therefore a reduction in the EQUITY.
Fenway Frank
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is Off

Forum Jump

All times are GMT -7. The time now is 09:10 AM.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
all contents copyright (c) by AccountingUsers Inc.