Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

This account records amounts that the owner (in a sole proprietorship) adds to or withdraws from the entity. It is an alternative to the "Partner Current Account" for sole proprietorships.

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 1 Presentation of Financial Statements
US GAAP ASC 505 Equity

❓ Frequently Asked Questions

Q: What is the owner current account?

A: Used in sole proprietorships as an alternative to the partner current account, recording owner additions and withdrawals.

Q: How is an owner withdrawal recorded?

A: Dr. Owner Current Account, Cr. Bank or Cash.