• Registered: 06/28/2010
  • Posts: 5

Topic: personal account

Hi,

How can I handle personal drawings/contributions e.g. the owner transfers money from his private bank account to his business's account.

Wouldnt I need a neutral class type account which, depending on its balance, would be a deduction from/addition to retained earnings (directly and at year end closure)?

Regards
Jo

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: personal account

You should create an account in the Equity group and use this account for transfer forth and back with your company.
But take care. In many countries you are not allowed to lend money from your company. The account should not go in debit.

/Joe