One Business Owner will Leave, How to Handle?

a_n_almutawaa

We are three owners for a business. One owner would like to leave and take his money (lets say approx. $1000). How in detailed steps can I enter this information in my WaveApps account if this money will be taken from the Business Bank Account?

Please note: I dont have accountant knowledge, so please explain it in clear steps.

Regards

QaisE

Hi @a_n_almutawaa, thank you for bringing this up! In order to better help you here, we may need a bit more information to give you the answer you are looking for. Do you have separate accounts for each stakeholder's equity in the company? Is the money they put in coming directly out of your business bank account that you share? If you could give us the breakdown of how each owner's share in the company has been entered into Wave, then we could give you a possible solution here.

a_n_almutawaa

Thank you very much @QaisE for your response. What I did after gathering all the money from the three owners ($1000 each) I entered the amount as an Opening Balance - Owner's equity with $3000.

I did not separate the accounts for each stakeholder's equity, I created one with the total amount and used it. Now one of the owners will leave and we will give him his $1000. What is the best way to record it?

Barsin

Hey there @a_n_almutawaa

Any withdrawal from an account would need to be an expense categorized under that equity account. The reason @QaisE mentioned that it would be best to track each equity account under each business owner is for better bookkeeping:

Owner 1 equity account
Owner 2 equity account
Owner 3 equity account

Each owners contributions can be documented separately but still tracked as total equity.