Thank you for your question, and thanks for using JustAnswer.com. When you have an owner use business funds for personal expenses, you will debit the owner draws account. This is an equity account, and will decrease the equity the owner has in the business.
Remember, Assets = Liabilities + Owner's Equity
When you make the entry to record the transaction, you will debit owner draws and credit cash. This decreases both equity and assets.
I hope this makes sense. Please let me know if you need any further information.
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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.