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Handling Owner's Investment

Pvaug2Pvaug2 Member Posts: 1

Hi All! Quick question - I am a bit new to accounting and want to be sure and handle owner's investments the correct way. Say an owner contributes $2500 as an initial investment for operating income into a business - the investment deposits were auto recorded via bank upload and i created an investment/draw account for each owner to record them. Is there any more to do other than that? I notice on the balance sheet it shows an equity balance in each owners account, although some of the funds have already been expended. Thank you!

in Accounting Technical Support

Comments

  • NopDesign_ConnorNopDesign_Connor Member Posts: 22 ✭✭

    So just to make sure, you did this, right?

    Deposit of $2500 into bank account, categorized as Owner's investments (or the name you chose), which is an Owner's Equity account.

    If you did it like that, your reports will show a credit to your equity accounts, and the actual money will exist on your business' bank account.

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