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Should an owner's compensation be recorded as an expense or in the Drawing account?

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Should an owner's compensation be recorded as an expense or in the Drawing account?
posted Jul 3, 2017 by Abu Anam

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1 Answer

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If the enterprise is a sole proprietorship, the owner's compensation should be debited to the Drawing account. If the enterprise is a corporation, the owner's gross compensation should be debited to a salary expense account.

answer Jul 4, 2017 by Sunita
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