What is owner distribution is a what account?

An owner distribution is not an account in the traditional sense of a separate ledger account like "cash" or "accounts receivable." Instead, it's a transaction type that reflects the withdrawal of profits or capital from a business by its owner(s). The impact of this transaction is recorded across several accounts, depending on the business structure and accounting method used.

Here's a breakdown:

• Sole Proprietorship & Partnerships: In these structures, owner distributions are often recorded as a reduction in the owner's equity account. This means the money taken out decreases the owner's capital balance. There's no separate "owner distribution" account. The transaction might be recorded with a debit to the owner's drawing account (a contra-equity account) and a credit to the cash account.

• Corporations (S-Corps & LLCs taxed as S-Corps): Distributions to shareholders are often called distributions or draws. While the terminology varies, it again doesn't typically involve a dedicated "owner distribution" account. The specific accounting treatment depends on whether the distribution is considered a dividend (from profits) or a return of capital. A dividend distribution would reduce retained earnings, while a return of capital would reduce the shareholders' capital account.

• Corporations (C-Corps): In C-corporations, distributions are generally dividends, and the accounting is more complex, involving various accounts like retained earnings, dividends payable, and cash.

In summary: There's no universally defined "owner distribution account." The effect of an owner distribution is reflected in changes to other accounts, primarily those related to owner's equity or retained earnings, depending on the legal structure of the business and the nature of the distribution. The transaction is documented, however, and the financial statements will show the impact of the distribution on the business's overall financial position.