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How to record the withdrawal of money or stock for personal use

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Summary

How to record Owner's Draws in Sage Accounting.

Description

As a business owner, withdraw money or stock for personal use. This is equivalent to paying the owner or partner. Record owner drawings using journals. Owner draws don't apply to limited companies.

Resolution

The default Owner's Draw account (3930) exists to help you record owner draws. If your company is a partnership, create an account for each partner. Select the Equity category when creating the account. Use any code, but keep it in the range of 3000 to 3999 with other equity codes.

To record an owner withdrawal (money or stock)

  1. Go to Adjustments, select Journals, then select New Journal.
  2. Enter a reference and journal date.
  3. Complete the journal lines as shown below:
    Ledger account Details Debit Credit
    Chequing (1020)
    Owner drawings
    		 0.00
    Amount withdrawn / value of stock
    Drawings – equity (3930)
    		 Owner drawings
    Amount withdrawn / value of stock
    		 0.00