Owner’s Equity

The owner’s claim against the assets of the business, the value of the business to the owner. AKA Capital

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To increase it, add Credit To decrease it, add Debit

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It is increased then the owner invests more into the business It is decreased when the owner withdraws Assets from the business

Residual Claim

Owner’s Equity is a residual claim it is what the owner is entitled to the what remains of the assets (residue) only after all creditors have been paid.