Would an accountant record the personal assets and liabilties of the owners in the accounts of business.Explai?
If the owner of the asset wants to completely hand over his personal assets to the company, then that person can do so. Normally, when money, supplies, or equipment are invested, they are given a dollar value, and then listed in the “{owner’s name}, Capital” account. The term capital, means the owners holdings within the company. When the owner wants to remove an asset from the records, you create a Drawing Account “{owner’s name}, Drawing” That way when an owner needs to take out $2,000 for his personal use, it is recorded exactly where it went. If one of the owners has a separate savings account that he wants nothing to do with the business, then he should keep it to himself, and not let it get any where near the official books for the company.
