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Chapter 19. Equity Accounts > The Owner’s Equity Account

The Owner’s Equity Account

You can add an Owner’s Equity or Owner’s Draw account to track the investments you and others have in your business. Contributions you make to the business will increase this account, and the Opening Balance Equity account balance can be transferred to this account as well.

The owner’s equity or draw account is used in a business that is a sole proprietorship or a partnership. Corporations will use a Retained Earnings account. Both types of accounts represent the owner’s value in the business.


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