I am not an accountant, but is my understanding, that everything which
comes to business from owner or gets withdraw goes through equity
Something like this:
2000-01-01 open Equity:Initial-inverstments
2000-01-01 open Equity:Drawings
2000-02-01 * "Initial investment in business"
Equity:Initial-inverstments -10000.00 USD
Assets:Bank:Checking 10000.00 USD
2000-03-01 * "Withdrawing from business"
Equity:Drawings 5000.00 USD
Assets:Bank:Checking -5000.00 USD
Or may be even simpler,
2000-01-01 open Equity:Inverstments-and-drawings
2000-02-01 * "Initial investment in business"
Equity:Inverstments-and-drawings -10000.00 USD
Assets:Bank:Checking 10000.00 USD
2000-03-01 * "Withdrawing from business"
Equity:Inverstments-and-drawings 5000.00 USD
Assets:Bank:Checking -5000.00 USD
And then you can distinguish investments from drawings by their sign
E.g.: for investments:
select date, narration, cost(position) as value
where account ~ ''Equity:Inverstments-and-drawings' and value <=0
something like this
On Thursday, March 2, 2023 at 12:54:22 PM UTC+1 and...@anderslindstrom.com
wrote:
> I’ve only just started using beancount and I really like it.
>
> I have a question about how to model equity withdrawals. That is, if I run
> a business then, on occasion, I withdraw equity from the business. The
> terminology used here depends on the business type: “drawings”, (
> https://www.accountingcapital.com/basic-accounting/drawings/), “partner
> drawings” and “dividends” are used depending on the context.
>
> It seems that beancount doesn’t explicitly have this concept. It has
> account types Assets, Liabilities, Income, Expenses and Equity but not
> Drawings.
>
> I understand why this is so. It looks to me like beancount is targeted at
> personal finance where drawings aren’t really relevant.
>
> For my purposes, I have tried using Expense:Drawings as a workaround and
> it seems to do what I need for now. However, in accounting, drawings are
> considered to be their own top-level type (
>
> https://www.accountingtools.com/articles/are-dividends-considered-an-expense.html).
>
> I see that someone else has used Equity:Drawings instead (
> https://groups.google.com/g/beancount/c/ItnftyBIJzs/m/-q646QBjBQAJ).
>
> So my question is whether anyone else has had a need to deal with drawings
> and what pros and cons are associated with their approach.
>
> Anders.
>
>
>
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