and now we will learn how to record owners withdrawals this
means paying personal expenses from business funds
there are four kinds of owner withdrawals transactions the owner takes cash from the
business bank account the owner spends money from the business bank account for a non-business
reason the owner spends money from the company credit card for a non-business reason and lastly
the owner takes home a non-cash asset but for that last one that's a special case and we'll
see how to do that in the following video the first we are done like any other check or credit
card charge for ATM withdrawals and non-business payments use the write a checks window it's very
simple for credit card charges use the credit card charge window it's very simple in both cases the
owners withdrawals is the account that the money is paid or charged to that means it should the
withdrawals account should go at the bottom of the window for both writer checks and for
company credit card charges so here's the first example April 20 Holden withdrew $200 from an ATM
and spent the cash for non-business reasons and they gave them an ATM slip with the transaction
number like they're supposed to now that's very very simple and we're going to record it in the
write a checks window before we write the check let's take a look at the trial balance we know
that right now Holden's withdrawals where is it Holden's drawers so Holden's withdrawals is
7,000 but if he withdraws $200 that means after this transaction this will be seven thousand two
hundred dollars and the cash of the company bank account will go down to nine thousand
eight hundred dollars from the main menu we click banking write a check we put the date April 20 and
we know who whomever we paid as whomever we would put here but now remember we're taking it from
the company bank account just click OK and we're paying it to Holdings drawers holdings withdrawals
remember the top account is where the money is coming from and the bottom account is where the
money is going to and of course in this case it was two hundred dollars that he withdrew from
an ATM and of course instead of a check number you should really remove this instead of a check
number you put the ATM slip number because nine eight seven six five four nine eight seven six
five four because you need a transaction number that you and the bank can both trace it to now
when we click Save and close you can see Holden's drawers has increased to 7,200 as the cash in bank
had decreased to $9,800 second example just as easy April 21 holden wrote a check to his son's
dentist for his son's tooth cleaning $100 check number 65 well that's obviously not for business
so we do it the exact same way so banking write a check okay it's check number a check number 65
so we put the field here check number 65 normally we would put the name of the dentist here but you
don't have to if it's withdrawals okay new vendors of dentists or whatever the guys name is now with
a hundred dollars but the fact that it was not for business means that it's coming from the
company bank account but it's going to Holden's drawers also known as Holden's withdrawals when
we save and close we can see Holden's drawers increased by three hundred and cash and bank
deke askew holders drawers increased by a hundred and cash in Bank decreased by a hundred now let's
try this last example the last example is also the same thing even though it's from a credit
card April 22 charge 300 dollars from the company credit card for the family vacation and of course
they give you a number on the slip that you can uniquely identify the transaction so if we pay
300 for non-business reason from the company credit card it's actually Discover Card that
means that after we record this transaction Discover card will show up here for the first
time with a balance of $300 and Holdens drawers should go up to 7600 from the main menu we click
banking and then we record our enter credit card charges and this window is just like the right
of checks window the only difference is it's taking it from the company credit card rather
than the bank account but it's exactly the same idea the number on the slip is the transaction
number whomever they charge the money to would go in the payee field we skip that the money
amount is 300 and the account it's being paid from the company credit card but it's going to
Holden's withdrawals why because it's a charge for non-business after we click Save and close
we can see Discover Card shows up for the first time as 300 and the total money that
Holden took out from the company for non-business reasons altogether from the beginning with $7,600