Why is the owners draw account a running total on the balance sheet, where as all the other accounts on the balance sheet reset to zero at the beginning of a new accounting period?
Owners Draw acts like asset or liability account – it always maintains a balance. You can adjust the amount at the end of the year if you wish by creating an Account Adjustment (Lists > Accounts > Adjustments) of “-0.00” (where 0.00 is the balance in Owners Draw) and entering the same amount (as a positive number) in Retained Earnings.
