Thanks for the response. First year, I didn't have the retained earnings. I transferred distribution directly to my bank account on a quarterly basis. During year end, quickbooks, did the entry of a net profit to retained earnings. The net profit came out was after the shareholder distribution. Technically, retained earnings account was created at the year end. The net profit of the 2018 came out after the shareholder distribution. If I debit retained earnings then would it reduce the retained earnings? I think, it will also double count the shareholder distribution. first I quarterly reduced the bank and now reducing the retained earnings.