This section describes typical owner’s equity accounts. The owner’s claims to the assets of the business is called owners’ equity. A company has separate accounts for each element of owner’s equity. Remember the extended version of accounting equation!
• Owner,Capital. Owner’s Capital account represents the net contribution of the owner in the business.
• Owner, Withdrawals. The amounts taken out of the business by the owner appear in a separate account titled Withdrawals, or Drawing.
• Revenues. The company will receive assets (for example, cash) in exchange for goods sold and services rendered. 
• Expenses. Expenses use up assets or create liabilities in the course of operating a business. The cost of operating a business is called expense