Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Get 50% OFF QuickBooks for 3 months*
Buy nowQuickbooks has this TOTALLY Wrong!!
The Draw Account or Owners Draw is a Contra-Equity Account that should carry a Debit balance (not negative). Then at the end of each year you should make a journal entry to credit the drawing account then debit owners equity.
The removal of cash transaction is a debit to the temporary drawing account and a credit to cash.
EOY (End of Year) there is a credit to the drawing account & a debit to owners equity. Quickbooks should not be carrying a "negative" balance in this account this confuses the accounting equation immensely and is fundamentally incorrect. When you remove money using a draw account it should carry a debit balance as a contra account to owners equity