The equity account group refers to the net worth of a business to its owner.
Each account group in Sage Simply Accounting can be further divided into account classes.
Table showing the account classes
in the equity account group
|
Account Class |
Description |
|---|---|
|
Equity |
The net worth of a business to its owner. This class encompasses all equity classes and can represent any type of equity. |
|
Cash |
Can be used to classify equity, but we do not recommend you use it as an equity. |
|
Bank |
Can be used to classify equity, but we do not recommend you use it as an equity. |
|
Credit Card Payable |
Can be used to classify equity, but we do not recommend you use it as an equity. |
|
Owner/Partner Contributions |
Amounts contributed to the company by an owner or partner. |
|
Owner/Partner Withdrawals |
Withdrawals of cash from the company by an owner or partner. |
|
Share Capital |
Amount contributed to the company through the sale of stock. |
|
Retained Earnings |
Accumulated total net income (less owner/partner withdrawals). |
|
Current Earnings |
Net difference between the revenues and the expenses. You can only have one Current Earnings account. You cannot process transaction entries directly to this account. |