How to Calculate Withdrawals on an Owner's Equity Statement
How to Calculate Withdrawals on an Owner's Equity Statement. Owner’s equity is the residual value of a sole proprietorship -- a business owned by an individual -- if it paid off all of its debts. A withdrawal occurs when the owner takes money out of the company that will no longer be used in the company. The statement of owner’s equity shows the items that cause changes to owner’s equity during an accounting period. Investments and net income increase owner’s equity. A net loss and withdrawals decrease owner’s equity. You can calculate a sole proprietorship’s withdrawals if you know the other items on the statement of owner’s equity.
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