| You can make transfers to the Retained Earnings account from the
registers of other balance sheet accounts; or you can use Retained
Earnings in a general journal entry. Your accountant can advise you
if adjustments to this account are appropriate and how to make the
adjustment.
While you might adjust the Retained Earnings account to track
funds withdrawn by, or distributed to, company owners, Intuit
recommends that you create a separate equity account (commonly
called Owner's Draw or Distributions) for these transactions.
Using this method, you can easily see the total funds withdrawn
by the owner as well as the individual transactions that make up
the total amount. |
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