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Banking Module


What is Owner's Draw?

The owner of a sole proprietorship does not normally receive a "formal" pay check from the business, but just like most of the rest of us needs money to pay for his house, car, utilities, and groceries. An owner's draw is used in order for the owner to receive money or other "goodies" from his business to take care of his personal bills. ie.Decrease in owner's equity (capital) resulting from withdrawals made by the owner.