USA Basic accounting entry question...

[btremaine]

I am an engineering consultant who is using GNU cash for double entry bookkeeping of my one person operation. Though I have had accounting classes, (MBA business '85) it is not something I have used a lot.

I have a transaction and I want to enter it properly. Here it is:
1. Charge $100 on my Chase card and use it for purchasing a non-business item for my daughter.

What I have been doing is to credit Chase accounts payable $100 and debit owner equity withdrawal $100. When the Chase statement comes in I debit Chase accounts payable with whatever the payment is and credit by business checking account with the payment amount. Is this correct?

My owners equity withdrawal account has a large debit (negative) balance. Is this presumably the total amount I have withdrawn since starting bookkeeping?

Thanks for your help,

 

[kirby]

Your entries are correct.

The large debit in your equity withdrawal account will get larger the more you pull money out of that account, whether to pay yourself or to pay for non business items, such as in your post.