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Replying to:
katherinejoyceO
QuickBooks Team

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Hi fd_com,

 

I'll guide you on how to record the distribution of profit in QuickBooks. First off, you'll need to set up an owner's draw account. Then, write a check from an owner's draw account. 

 

Here's how:

 

  1. Go to the Lists menu, then select Chart of Accounts or press CTRL + A on your keyboard.
  2. At the bottom left choose Account, then click New.
  3. Select Equity, then click Continue.
  4. Enter the account name (Owner's Draw is recommended) and description.
  5. Click Save & Close.

 

Once done, go to the Banking menu to write a check. Here's how:

 

  1. in the Write Checks window, go to the Pay to the order of section. 
  2. Select the owner, and enter an amount next to the $ sign.
  3. Enter the amount of the check to the equity account you created to record the owner's draws, then click Save & Close to record the check.

 

For more insights about the owner's draw account, refer to this article: Set up and pay an owner's draw.

 

I also recommend consulting your accountant to make sure your books are accurate. 

 

For future reference, check this article to understand the Chart of Accounts in QuickBooks. 

 

Let me know if you have additional concerns. I'll be happy to help you again on your next posts. 

 

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