Just noticed that my AgriInvest income account is an equity account and this is where I have entered deposits & withdrawals. My old NISA Dep & withdr account was a Personal Drawing Account. Does this matter?
Hi Brent D
The reason that the AgriInvest income account is set up as equity, rather than a personal draw, is so that it does not close out to retained earnings at the end of the year. That account is used to track the balance of the taxable portion of your AgriInvest deposits, and so it needs to have the running balance in it year to year. So in that sense, it is important that the account is set up correctly. For reporting purposes, though, it doesn't make that much of a difference.
Hope this helps!