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October 31, 2023
Question

Former Owner's equity and draws

  • October 31, 2023
  • 1 reply
  • 0 views

Hello All, 

 

I am trying to clean up a balance sheet for year end. I have a balance in owner equity for a former member (1) that is no longer valid. What would be a correct way to do a journal entry to remove that off the balance sheet? Would moving that balance to the new member (s) or recalculating it be correct?

 

Thanks for the help! 

1 reply

Rainflurry
October 31, 2023

@aamwright 

 

Way too many variables to address in this forum.  I would suggest contacting your CPA/tax accountant.