שאינו יודע האט געשריבן:נארפאקטן האט געשריבן:יוד אלף האט געשריבן:Expense comes from owner's equity
This will increase the equity, which is not really the intended result
Of course it does.
If he paid from his personal pocket $1,000 that he can use as a business expense. Then he can take out another 1,000 from the business. Or in other words. The 1,000 that he took last week was to cover this.
So if you have it entered this way, you can have the accurate drawing number at the end of the year and this might be useful when your draw was more then the income it will set it off
יא יא. אבער נאר אויב ס'נאר דא איין אוינער, נישט קיין שותפות...