Owner Withdrawals

The payments made to the owners of a business from the accumulated earnings of that business. The distributions to owners are given different names depending on the organizational structure of the business. (II-5, 14, 17-18; III-2, 11-13, 15-16) Corporation - Dividends are distributions declared by the board of directors, payable to the stockholders, usually in cash; sometimes in shares of the corporation's stock, called a "stock dividend"; less frequently in property, called a "dividend in kind." (II-5, 39) Proprietorship and Partnership - Capital Draws represent the funds distributed to an owner or a partner, either as a systematic, regular withdrawal of a fixed sum (such as might be used for personal living expenses), or as an irregular withdrawal (such as might be used for personal discretionary use). Capital draws can be further broken down into two categories: a.        Owner Withdrawals for Unpaid Labor and Management represent distributions made to the owner(s) or partners but only up to the estimated value of unpaid labor and management actually performed by the owner(s) or partners. (II-23-25; III-13-15, 17) b.        Other Distributions would be those amounts distributed to the owners which are estimated to be in excess of the estimated value of unpaid labor and management actually performed by the owner(s) or partners. (II-6, 22) Cooperative - Patronage Distributions or Patronage Dividends represent that portion of a cooperative's net income or net savings which is distributed to its members based on their proportional patronage of the cooperative.depending on the organizational structure of the business. (II-16, 22; III-2, 13-15, 17, 18) Corporation - Dividends are distributions declared by the board of directors, payable to the stockholders, usually in cash; sometimes in shares of the corporation's stock, called a "stock dividend"; less frequently in property, called a "dividend in kind." (II-6, 46) Proprietorship and Partnership - Capital Draws represent the funds distributed to an owner or a partner, either as a systematic, regular withdrawal of a fixed sum (such as might be used for personal living expenses), or as an irregular withdrawal (such as might be used for personal discretionary use). Capital draws can be further broken down into two categories: a.        Owner Withdrawals for Unpaid Labor and Management represent distributions made to the owner(s) or partners but only up to the estimated value of unpaid labor and management actually performed by the owner(s) or partners. (II-23-25; III-13-15, 17) b.        Other Distributions would be those amounts dis-tributed to the owners which are estimated to be in excess of the estimated value of unpaid labor and management actually performed by the owner(s) or partners. (II-6, 22) Cooperative - Patronage Distributions or Patronage Dividends represent that portion of a cooperative's net income or net savings which is distributed to its members based on their proportional patronage of the cooperative.

Authorization Path: 2.2.5.2.43.1