What is what kind of account is owner distribution?

An owner distribution account is a type of account used to record distributions made to the owners or shareholders of a business. These distributions can be in the form of dividends, withdrawals, or distributions of profits. Owner distribution accounts are commonly used in sole proprietorships, partnerships, and limited liability companies (LLCs) where the owners are entitled to receive a share of the profits of the business.

Owner distribution accounts help keep track of the amount of money distributed to each owner and ensure that the distributions are properly recorded in the company's financial statements. It is important to distinguish between owner distributions and salary or wages paid to owners, as they are treated differently for tax and accounting purposes.

In summary, owner distribution accounts are used to record distributions made to the owners or shareholders of a business and help track the amounts distributed to each owner.