What transactions increase or decrease owner's equity?

Transactions leading to a decline or increase in owners? equity include:

• Owners draws. The Owners of a business, especially sole proprietorships and partnerships, can withdraw money for personal uses. Unfortunately, such withdrawals translate to a decline in owners? equity. On the other hand, if the owner of a business decides to put money in the business, it translates to an increase in cash which is part of business assets, in the event that the money will not be refunded to the owner, it means that it is not a liability. Therefore, equity will yield a higher amount.
• Profits and losses. When a business operates profitably by purchasing inventory at a relatively low price and reselling it at a higher price, it makes profits which increase owners? equity. Conversely, unprofitable business operations leading to losses translate to a decline in owners? equity. It occurs when expenses exceed revenues.