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What does the term "members draw" mean on a balance sheet?
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Troubled
Oct 4, 2015, 1:45:03 AM10/4/15
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Google doesn't seem to have anything on this.
I looked at a balance sheet that has members draw as a entry under equity. The proprietor tell me that it means additional money she has paid into the company. If so, it seems to be phrased poorly, as draw implied money taken out; doesn't it?
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I looked at a balance sheet that has members draw as a entry under equity. The proprietor tell me that it means additional money she has paid into the company. If so, it seems to be phrased poorly, as draw implied money taken out; doesn't it?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Alan
Oct 4, 2015, 8:20:04 PM10/4/15
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On 10/3/15 10:44 PM, Troubled wrote:
> Google doesn't seem to have anything on this.
>
> I looked at a balance sheet that has members draw as a entry under equity. The proprietor tell me that it means additional money she has paid into the company. If so, it seems to be phrased poorly, as draw implied money taken out; doesn't it?
>
A sole properietor's balance sheet would have three equity accounts: the
> Google doesn't seem to have anything on this.
>
> I looked at a balance sheet that has members draw as a entry under equity. The proprietor tell me that it means additional money she has paid into the company. If so, it seems to be phrased poorly, as draw implied money taken out; doesn't it?
>
initial equity, the owner's draw and the net profit. The owner's draw
represents the amount of distributions OUT of the owner's equity.
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