This is helpful. I have an LLC, 2 partners. We each have our Equity account divided like this:
Partner1 Equity
--Partner1 Equity - Contributions
--Partner1 Equity - Distributions
Partner2 Equity
--Partner2 Equity - Contributions
--Partner2 Equity - Distributions
So at the end of the year, when i want to zero out the distributions (our "Draw" accounts), i would then create journal entries, with Debits to which accounts? I know to credit the Draw/Distribution accounts but i'm confused about the Debit.
