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

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.

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 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 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   Checking (1020)	Owner drawings	0.00	Amount withdrawn
   Drawings - equity (3930)	Owner drawings	Amount withdrawn	0.00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

1. Go to Adjustments, Journals, and click New Journal.
2. 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