Thanks for the detailed reply. In this case, the reason for the distributions is because the owner used the business credit car account for personal expenses, which thus far he has stopped. But I'm trying to see how to classify them going backwards. The expenses are on the bank feed, and yes I have changed the name of the chart of accounts for "shareholder" distribution. Basically I am trying to determine how to properly add personal expenses to an account in quickbooks. So far I've added "shareholder distribution" and the balance sheet keeps going negative. What account or journal entry should I do if I need to close this out? Thanks!