Check with a local cpa, I think the UK is same as the US in this respect, dividends are paid from ltd companies and are paid from retained earnings. For a sole trader an equity distribution is an equity draw.
At any rate equity draw and investment should be rolled up into equity at the start of the new fiscal year after any tax time adjustments are made.
debit investment, credit equity for the total in the investment account
debit equity and credit drawing for the total in the drawing account
debit retained earnings, credit equity for the total in the retained earnigns account ( or for each partner per their shares)
For a company taxed as a sole proprietor or partnership, I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here
