{"id":5055,"date":"2019-08-19T09:05:08","date_gmt":"2019-08-19T09:05:08","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/%d8%a5%d8%b6%d8%a7%d9%81%d8%a9-%d8%ad%d8%b3%d8%a7%d8%a8-%d8%ac%d8%af%d9%8a%d8%af-%d8%a8%d8%af%d9%84%d9%8a%d9%84-%d8%a7%d9%84%d8%ad%d8%b3%d8%a7%d8%a8\/"},"modified":"2026-10-20T10:32:50","modified_gmt":"2026-10-20T10:32:50","slug":"adding-a-new-account-in-the-chart-of-accounts","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/adding-a-new-account-in-the-chart-of-accounts\/","title":{"rendered":"Adding a new account in the Chart of Accounts"},"content":{"rendered":"<div dir=\"ltr\" lang=\"en\">\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The system manages your financial accounts and processes their transactions automatically, and you can add an unlimited number of main and sub accounts to suit your business. This guide explains how to add a new account, with a practical example of adding <strong style=\"color: #111827;\">accounts for multiple partners<\/strong> to track each partner&#8217;s capital and distribute profits among them.<\/p>\n<div style=\"display: flex; gap: 10px; background: #f6f8fb; border-left: 4px solid #1a56db; border-radius: 6px; padding: 14px 16px; margin: 0 0 18px;\">\n<p><span style=\"flex: 0 0 auto; font-size: 18px; line-height: 1.6;\">\ud83d\udec8<\/span><\/p>\n<p style=\"margin: 0; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Note:<\/strong> Before you start, make sure the <strong style=\"color: #111827;\">Accounting<\/strong> app is active in the <a style=\"color: #1a56db;\" href=\"https:\/\/go.daftra.com\/v2\/owner\/plugin-manager\/2\" target=\"_blank\" rel=\"noopener\"><strong style=\"color: #1a56db;\">Apps Manager<\/strong><\/a>, and that you have the permission to manage accounts.<\/p>\n<\/div>\n<div style=\"border: 1px solid #e5e7eb; border-radius: 8px; padding: 12px 16px; margin: 0 0 20px;\">\n<p style=\"margin: 0 0 6px; font-weight: bold; color: #111827;\">Contents<\/p>\n<ol style=\"margin: 0; padding-left: 22px;\">\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#types\"><strong style=\"color: #1a56db;\">Main accounts and sub accounts<\/strong><\/a><\/li>\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#steps\"><strong style=\"color: #1a56db;\">Steps to add a new account<\/strong><\/a><\/li>\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#auto\"><strong style=\"color: #1a56db;\">Accounts you don&#8217;t add from the chart of accounts<\/strong><\/a><\/li>\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#partners\"><strong style=\"color: #1a56db;\">Add accounts for multiple partners<\/strong><\/a><\/li>\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#capital\"><strong style=\"color: #1a56db;\">Record the partners&#8217; capital<\/strong><\/a><\/li>\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#profit\"><strong style=\"color: #1a56db;\">Distribute profits to partners<\/strong><\/a><\/li>\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#draw\"><strong style=\"color: #1a56db;\">Partner drawings<\/strong><\/a><\/li>\n<li style=\"margin-bottom: 4px;\"><a style=\"color: #1a56db;\" href=\"#faq\"><strong style=\"color: #1a56db;\">FAQ<\/strong><\/a><\/li>\n<\/ol>\n<\/div>\n<h2 id=\"types\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Main accounts and sub accounts<\/h2>\n<table style=\"width: 100%; border-collapse: collapse; margin: 0 0 18px; font-size: 15px; line-height: 1.8; color: #1f2430;\">\n<tbody>\n<tr>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Type<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Description<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Example<\/th>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">Main Account<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">A group (folder) that contains other accounts. You can&#8217;t record entries on it directly; its balance is the total of the accounts under it.<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Expenses, Partners.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">Sub Account<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">The account that entries are actually recorded on.<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Office Rent, Partner Ahmed \u2013 Current Account.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"steps\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Steps to add a new account<\/h2>\n<ol style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click <strong style=\"color: #111827;\">Accounting<\/strong> in the main menu, then <a style=\"color: #1a56db;\" href=\"https:\/\/go.daftra.com\/v2\/owner\/chart-of-accounts\" target=\"_blank\" rel=\"noopener\"><strong style=\"color: #1a56db;\">Chart of Accounts<\/strong><\/a>. The chart appears as a tree.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Open the main account you want to add under (optional; it is then selected automatically as the main account).<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click <strong style=\"color: #111827;\">Add Account<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Enter the account details:\n<ul style=\"margin: 8px 0 0; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Account Type<\/strong>: <strong style=\"color: #111827;\">Sub Account<\/strong> or <strong style=\"color: #111827;\">Main Account<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Code<\/strong>: suggested automatically as the next code after the last one under the main account, and you can change it. Codes can&#8217;t be repeated (<strong style=\"color: #111827;\">The account code must be unique<\/strong>).<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Name<\/strong>: the account name.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Main Account<\/strong>: the account the new account is listed under. A sub account must have a main account.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Type<\/strong>: <strong style=\"color: #111827;\">Debit<\/strong> or <strong style=\"color: #111827;\">Credit<\/strong> according to the nature of the account. It is suggested automatically from the main account.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Permissions<\/strong>: appears when branches are set for accounts. Select at least one branch.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click <strong style=\"color: #111827;\">Save<\/strong>. A message confirms that the account has been saved.<\/li>\n<\/ol>\n<table style=\"width: 100%; border-collapse: collapse; margin: 0 0 18px; font-size: 15px; line-height: 1.8; color: #1f2430;\">\n<tbody>\n<tr>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Nature of the account<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Type<\/th>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Assets and expenses<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">Debit<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Liabilities, equity and revenues<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">Credit<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"auto\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Accounts you don&#8217;t add from the chart of accounts<\/h2>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Accounts for <strong style=\"color: #111827;\">clients<\/strong>, <strong style=\"color: #111827;\">suppliers<\/strong>, <strong style=\"color: #111827;\">treasuries and bank accounts<\/strong>, <strong style=\"color: #111827;\">warehouses<\/strong>, <strong style=\"color: #111827;\">assets<\/strong> and <strong style=\"color: #111827;\">taxes<\/strong> aren&#8217;t added from the chart of accounts. They are created automatically when you add the record from its own app.<\/p>\n<div style=\"display: flex; gap: 10px; background: #f6f8fb; border-left: 4px solid #1a56db; border-radius: 6px; padding: 14px 16px; margin: 0 0 18px;\">\n<p><span style=\"flex: 0 0 auto; font-size: 18px; line-height: 1.6;\">\ud83d\udec8<\/span><\/p>\n<p style=\"margin: 0; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Example:<\/strong> You add a client from Clients \u2192 Add New Client. After you save, a sub account is created for the client automatically in the chart of accounts.<\/p>\n<\/div>\n<h2 id=\"partners\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Add accounts for multiple partners<\/h2>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The system doesn&#8217;t have a dedicated app for partners or profit distribution, but you can track each partner&#8217;s capital, share of profits and drawings by adding accounts for them in the chart of accounts under <strong style=\"color: #111827;\">Owner&#8217;s Equity<\/strong>:<\/p>\n<ol style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Open the <a style=\"color: #1a56db;\" href=\"https:\/\/go.daftra.com\/v2\/owner\/chart-of-accounts\" target=\"_blank\" rel=\"noopener\"><strong style=\"color: #1a56db;\">Chart of Accounts<\/strong><\/a>, then <strong style=\"color: #111827;\">Owner&#8217;s Equity<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Add a <strong style=\"color: #111827;\">Main Account<\/strong> named <strong style=\"color: #111827;\">Partners<\/strong> (optional; to group the partners&#8217; accounts), with the type <strong style=\"color: #111827;\">Credit<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Under it, add <strong style=\"color: #111827;\">two sub accounts<\/strong> of type <strong style=\"color: #111827;\">Credit<\/strong> for each partner:\n<ul style=\"margin: 8px 0 0; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Partner Capital \u2013 (name)<\/strong>: for what the partner paid in as capital.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Partner Current Account \u2013 (name)<\/strong>: for their share of profits and their drawings.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Repeat for each partner.<\/li>\n<\/ol>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Example of the final structure:<\/p>\n<table style=\"width: 100%; border-collapse: collapse; margin: 0 0 18px; font-size: 15px; line-height: 1.8; color: #1f2430;\">\n<tbody>\n<tr>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Account<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Account Type<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Type<\/th>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Owner&#8217;s Equity<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Main Account<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Credit<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">\u2014 Partners<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Main Account<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Credit<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">\u2014\u2014 Partner Capital \u2013 Ahmed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Sub Account<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Credit<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">\u2014\u2014 Partner Current Account \u2013 Ahmed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Sub Account<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Credit<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">\u2014\u2014 Partner Capital \u2013 Mohamed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Sub Account<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Credit<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">\u2014\u2014 Partner Current Account \u2013 Mohamed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Sub Account<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Credit<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"capital\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Record the partners&#8217; capital<\/h2>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Record what each partner paid with a <a style=\"color: #1a56db;\" href=\"https:\/\/go.daftra.com\/owner\/journals\/add\" target=\"_blank\" rel=\"noopener\"><strong style=\"color: #1a56db;\">journal entry<\/strong><\/a>. Example: Ahmed paid 120,000 and Mohamed paid 80,000 into the bank:<\/p>\n<table style=\"width: 100%; border-collapse: collapse; margin: 0 0 18px; font-size: 15px; line-height: 1.8; color: #1f2430;\">\n<tbody>\n<tr>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Account<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Debit<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Credit<\/th>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Bank<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">200,000.00<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Partner Capital \u2013 Ahmed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">120,000.00<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Partner Capital \u2013 Mohamed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">80,000.00<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">Total<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">200,000.00<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">200,000.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div style=\"display: flex; gap: 10px; background: #f6f8fb; border-left: 4px solid #1a56db; border-radius: 6px; padding: 14px 16px; margin: 0 0 18px;\">\n<p><span style=\"flex: 0 0 auto; font-size: 18px; line-height: 1.6;\">\ud83d\udec8<\/span><\/p>\n<p style=\"margin: 0; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Note:<\/strong> If the capital was already recorded as an opening balance in the general Capital account, you can move it to the partners&#8217; accounts with an entry: debit Capital, credit each partner&#8217;s capital account.<\/p>\n<\/div>\n<h2 id=\"profit\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Distribute profits to partners<\/h2>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">When you close the financial year, the net profit is carried forward automatically to the <strong style=\"color: #111827;\">Retained Earnings<\/strong> account under equity. Then distribute it to the partners with a journal entry according to the agreed percentages.<\/p>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Example: net profit is 100,000, Ahmed&#8217;s share is 60% and Mohamed&#8217;s is 40%:<\/p>\n<table style=\"width: 100%; border-collapse: collapse; margin: 0 0 18px; font-size: 15px; line-height: 1.8; color: #1f2430;\">\n<tbody>\n<tr>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Account<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Debit<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Credit<\/th>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Retained Earnings<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">100,000.00<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Partner Current Account \u2013 Ahmed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">60,000.00<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Partner Current Account \u2013 Mohamed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">40,000.00<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">Total<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">100,000.00<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">100,000.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Find the net profit in the <strong style=\"color: #111827;\">Income Statement<\/strong> report for the period, or from the <strong style=\"color: #111827;\">Retained Earnings<\/strong> balance after closing.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">In case of a loss, reverse the entry: debit each partner&#8217;s current account, credit Retained Earnings.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">You can distribute monthly or quarterly the same way, with an entry from the period&#8217;s net profit.<\/li>\n<\/ul>\n<div style=\"display: flex; gap: 10px; background: #f6f8fb; border-left: 4px solid #1a56db; border-radius: 6px; padding: 14px 16px; margin: 0 0 18px;\">\n<p><span style=\"flex: 0 0 auto; font-size: 18px; line-height: 1.6;\">\ud83d\udec8<\/span><\/p>\n<p style=\"margin: 0; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Warning:<\/strong> Distribution percentages and the treatment of profits depend on the partnership agreement and the accounting regulations in your country. Check with your accountant before recording.<\/p>\n<\/div>\n<h2 id=\"draw\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Partner drawings<\/h2>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">When you pay out profits or a partner withdraws an amount, record it on their current account. Example: paying 20,000 to Ahmed in cash:<\/p>\n<table style=\"width: 100%; border-collapse: collapse; margin: 0 0 18px; font-size: 15px; line-height: 1.8; color: #1f2430;\">\n<tbody>\n<tr>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Account<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Debit<\/th>\n<th style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Credit<\/th>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Partner Current Account \u2013 Ahmed<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">20,000.00<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Main Treasury<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">20,000.00<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">Total<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">20,000.00<\/strong><\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\"><strong style=\"color: #111827;\">20,000.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Or record it with an <strong style=\"color: #111827;\">Expense<\/strong> and select the <strong style=\"color: #111827;\">Partner Current Account \u2013 Ahmed<\/strong> account in it. At any time, the current account balance = the partner&#8217;s share of profits \u2212 their drawings.<\/p>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">To follow any partner&#8217;s movements, view the <strong style=\"color: #111827;\">Ledger<\/strong> of their current account or capital account.<\/p>\n<h2 id=\"faq\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">FAQ<\/h2>\n<h3 style=\"font-size: 18px; font-weight: bold; color: #111827; margin: 24px 0 10px;\">I want to add more than one partner for the profits?<\/h3>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Add a capital account and a current account for each partner under equity, then distribute the net profit to them with a journal entry according to the percentages. <a style=\"color: #1a56db;\" href=\"#partners\"><strong style=\"color: #1a56db;\">Details<\/strong><\/a>.<\/p>\n<h3 style=\"font-size: 18px; font-weight: bold; color: #111827; margin: 24px 0 10px;\">Does the system distribute profits to partners automatically?<\/h3>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">No. Closing only carries the net profit forward to the Retained Earnings account; the distribution is done with a manual entry.<\/p>\n<h3 style=\"font-size: 18px; font-weight: bold; color: #111827; margin: 24px 0 10px;\">A message says the code is already used?<\/h3>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The code is used by another account. Change it to a code that isn&#8217;t repeated.<\/p>\n<h3 style=\"font-size: 18px; font-weight: bold; color: #111827; margin: 24px 0 10px;\">Why can&#8217;t I add an account for a client or a treasury from the chart?<\/h3>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">These accounts are created automatically from their apps (Clients, Treasuries\u2026). Add the client or treasury from its own page.<\/p>\n<h3 style=\"font-size: 18px; font-weight: bold; color: #111827; margin: 24px 0 10px;\">Should I choose Debit or Credit for a partner account?<\/h3>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Credit<\/strong>, because capital and equity accounts are credit by nature.<\/p>\n<\/div>\n","protected":false},"author":5,"featured_media":0,"template":"","categories":[2109,2115],"tags":[24154,24155,4342,24141,24143,24144,24147,24152,5261,24145,24151,24156,24148,23612,21305,4312,4873,24142,24146,24150,24157,24153,24149,24158,24159,24140,4254,22318,4248,3807,4869],"class_list":["post-5055","tutorial","type-tutorial","status-publish","hentry","category-general-accounting","category-chart-of-accounts","tag-account-code","tag-account-code-cannot-be-duplicated","tag-accounting-software","tag-add-account","tag-add-new-account","tag-add-partner","tag-budget","tag-capital-and-equity","tag-chart-of-accounts","tag-close-fiscal-year","tag-credit","tag-debit","tag-distribute-profits-among-partners","tag-general-accounts","tag-income-statement","tag-journal-entries","tag-journal-entry","tag-multiple-partners","tag-parent-account","tag-partner-accounts","tag-partner-withdrawals","tag-partners-capital","tag-partners-current-account","tag-partners-en","tag-profit-distribution-en","tag-retained-earnings","tag-subaccount","tag---en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Adding a new account in the Chart of Accounts - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/tutorial\/adding-a-new-account-in-the-chart-of-accounts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Adding a new account in the Chart of Accounts - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"The system manages your financial accounts and processes their transactions automatically, and you can add an unlimited number of main and sub accounts to suit your business. 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