Creating an Equity Account

Equity is the difference between the total assets and total liabilities of a business. Equity accounts include your capital and retained earnings accounts.

To create an equity account

1. On the General Ledger menu, select Chart of Accounts. The Chart of Account screen appears.

2. Click Add. The GL Account Edit screen appears.

3. Type the major account number and primary description for the new account.

4. Type the minor account number and secondary description for the new account.

Note: If the minor account number is 0, leave the description blank.

5. In the Type area, select Ret. Earn.

6. Make sure the Active check box is selected.

7. Click OK.