Withdraw money or stock for personal use

If you're a business owner you may want to withdraw money or stock for your personal use. This is the equivalent of the owner or partner being paid. To help you keep track of this, you can record owner drawings using journals. Owner draws don't apply to limited companies.

To help you record owner draws, the default Owner's Draw account (3930) already exists. If your company is a partnership, create an account for each partner. When you create the account, make sure you select the Equity category. You can use any code, but you may want to keep it in the range of 3000 to 3999 along with your other equity codes.

To record owner drawings

1. Go to Adjustments, Journals, and click New Journal.
2. To record a withdrawal, enter the following information:

   Reference *	Enter a reference for the journal.
   Date *	Enter the date to use for the journal.
   Ledger Account *	Details	Debit	Credit
   Checking (1020)	Owner drawings	0.00	Amount withdrawn
   Drawings - equity (3930)	Owner drawings	Amount withdrawn	0.00

   To record a withdrawal of stock, enter the following information:

   Reference *	Enter a reference for the journal.
   Date *	Enter the date to use for the journal.
   Ledger Account *	Details	Debit	Credit
   Stock account	Owner drawings	0.00	Value of the stock
   Drawings - equity (3930)	Owner drawings	Value of the stock	0.00