Equity
Bookkeeping Ingredients > Chart Accounts-Accounts
Definition: The owners' claim on the assets of the business after all liabilities have been paid.
Financial Statement: Balance Sheet
Examples: Owner's Capital, Retained Earnings, Common Stock
Categories:
Owner's Capital (Sole Proprietorship/Partnership)
The owner's investment in the business plus accumulated profits less withdrawals.
Examples: John Doe, Capital
Common Stock (Corporation)
Represents the basic ownership shares of a corporation.
Examples: Common Stock
Retained Earnings (Corporation)
The cumulative net income of a corporation that has been retained by the corporation and not distributed to stockholders as dividends.
Examples: Retained Earnings
Debit: Decreases Balance
Credit: Increases Balance
Normal Balance: Credit
Betty Explains Owner's Equity
Dave Explains Owner's Equity
Understanding Owner's Equity
Profit Meets Owner's Equity