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QuickBooks 2013 For Dummies by Stephen L. Nelson, MBA, CPA

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Owner’s Equity in a Sole Proprietorship

Actually, tracking owner’s equity in a sole proprietorship is easy. You can use the single account that QuickBooks sets up for you, called Opening Bal Equity, to track what you’ve invested in the business. (You might want to rename this account something like Contributed Capital.)

casestudy.eps To track the money you withdraw from the business, you can set up and use a new owner’s equity account called something like Owner’s Draws. Table 20-1 gives an example of owner’s equity accounts in a sole proprietorship. Note that the numbers inside parentheses are negative values.

Table 20-1	An Example of Owner’s Equity Accounts in a Sole Proprietorship

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