Forum Message

Withdrawal of owners equity

How to I record withdrawal of owners equity from my business ?


Posted by Petra Westlake on Feb 6, 2011 11:02 AM GMT

Hi Petra,

If you are self-employed (not a limited company) then create a General Transaction from the 'Cheque Account' to the 'Owners Drawings and Personal Use' account.

Regards,


Posted by Mark McLaren (Solar Accounts) on Feb 6, 2011 2:09 PM GMT

How to I record injection and withdrawal of owners equity from my business ...
... if this is a limited company


Posted by Andreas Krueger on Feb 6, 2011 2:58 PM GMT

Hi Andreas,

A limited company allows for the injection of equity by selling shares. In this case record a General Transaction from the Share Capital account to the Cheque Account. The withdrawal of equity is done by issuing dividends - see this page for details of how to record this:
http://www.solaraccounts.co.uk/help/how-to-record-a-dividend-payment.php

If you are the director of a company and receive or deposit company funds, you may choose to record this as a directors loan. In this case create a General Transaction between the Directors Loan Account and Cheque Account. Note that this does not affect the Equity balance of the company.

Regards,


Posted by Mark McLaren (Solar Accounts) on Feb 7, 2011 8:26 AM GMT