I think the capital stock account is used to record owner's draw's and investments into the company. (I'm probably way off on that) So if I make a deposit into the capital stock account I automatically know that it's money from the owner's personal accounts that he/she wants to invest into the company. So if this is true then how should I categorize it in the "account" drop down list? Should I create an account called "owner's investment", and another called "owner's draw"?
Thanks
If the company is incorporated, you use the Capital Stock equity account to record the number of shares that are issued in the company at par value. Additional funds would be in another equity account called Additional Paid In Capital. If your company is a sole proprietorship, you need to create new equity accounts called Owner's Contributions and Owner's Draws and use these.
