Peachtree - Charts of Accounts - Account Type of Equity

Business Types and Equity Accounts 

When we setup a new company on New Company Setup - Company  Information window we have to select the business type. different business type use different equity accounts. which are as follows..

Corporation

When you select the Corporation business type during New Company Setup, the following equity accounts are automatically set up:

• Common Stock (Equity  doesn't close)
• Retained Earnings (Equity – Retained Earnings)
• Dividends Paid (Equity – gets closed)

S Corporation

When you select the S Corporation business type during New Company Setup, the following equity accounts are automatically set up:

• Common Stock (Equity – doesn't close)
• Retained Earnings (Equity – Retained Earnings)
• Dividends Paid (Equity – gets closed)

Partnership

When you select the Partnership business type during New Company Setup, the following equity accounts are automatically set up:

• Retained Earnings (Equity – Retained Earnings)
• Partner's Contribution (Equity – gets closed)
• Partner's Draw (Equity – gets closed)

Sole Proprietorship

When you select the Sole Proprietorship business type during New Company Setup, the following equity accounts are automatically set up:

• Retained Earnings (Equity – Retained Earnings)
• Owner's Contribution (Equity – gets closed)
• Owner's Draw (Equity – gets closed)

Limited Liability Company (LLC)

When you select the Limited Liability Company business type during New Company Setup, the following equity accounts are automatically set up:

• Retained Earnings (Equity – Retained Earnings)
• Member's Contribution (Equity – gets closed)
• Member's Draw (Equity – gets closed)