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Post Info TOPIC: What to do with drawings-Year end Quickbooks?
Denise


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What to do with drawings-Year end Quickbooks?
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Hi,

On Quickbooks there is no actual year end procedure but on the balance sheet it carries forwards drawings to the next year so that year then has accumulated drawings which means it's not a true figure of the present years drawings.

 There is a "Owners Equity" account , but if I try to journal to that, it warns that you should not post to a retained earnings account?

Can anyone help? Where do I put it?

Thanks in advance

 



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Denise
www.niftynumbers.co.uk
mushroom


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When the owner takes drawings, enter the payment directly into the bank account, and it is then just a matter of selecting the drawings equity account in the drop down box where you would normally pick the expense account. This correctly decreases the equity and bank accounts, and the true drawings figure is posted to the balance sheet.

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Denise


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Thanks Mushroom, but maybe I have not explained clearly what I mean.

I have no problem posting the payment to the drawings account, its just that, in this particular case we are into the second year and the amount of drawings on the balance sheet is showing both years drawings, making the drawings for this year look far too much. I think i need to journal out the drawings from the previous year but to where??

Many thanks

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Denise
www.niftynumbers.co.uk
Rhianrach


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Denise wrote:

Thanks Mushroom, but maybe I have not explained clearly what I mean.

I have no problem posting the payment to the drawings account, its just that, in this particular case we are into the second year and the amount of drawings on the balance sheet is showing both years drawings, making the drawings for this year look far too much. I think i need to journal out the drawings from the previous year but to where??

Many thanks

 It's not an answer so don't get excited Denise smile, but it is something I would also like to know the answer to. I would suspect the Capital account as well as the profit (or loss) figure, as capital is balance brought down plus profit minus drawings, if you move profit and drawings to capital it will give you the correct capital balance. It appears I'm waffling, I'll stop and let an accountant answer smile



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Steve
Denise


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Can I get a little bit excited Steve? I think your answer may be right cos where else can it go??

Cheers

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Denise
www.niftynumbers.co.uk
Rhianrach


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Denise wrote:

Can I get a little bit excited Steve? I think your answer may be right cos where else can it go??

Cheers

 Indeed you can, I must warn you though I am often wrong. wink



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Steve
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