How to record Sole trader Drawing and Wages

Hi I need to know how to record my drawings and staff wages. Where I need to record them and how. I am thinking it goes in Journal?

Please help for this.

Thanks
Nasir

For Sole Trader businesses there is no legal separation between you and your business, therefore your sales less your business expenses becomes your trading profit and your trading profit is counted as your personal income, regardless of drawings or how expenses were paid.

With regards to tagging, It depends whether you have a separate Sole Trader bank account or if you’re using your personal bank account for trading purposes.

No Sole Trader Business Account Held:

As a Sole Trader, you do not need to complete a Bank Reconciliation, simply enter/tag all sales and expenses for the business and delete any personal items.

Sole Trader Business Account Held:

Tag all personal expenditure paid from the business account, as a transfer into the ‘Proprietor’s Drawings Account’.

Tagging salaries, drawings and tax payments:

You will notice that when you go to tag a new item there’s also an option to tag salaries, dividends and drawings, along with options for tax payments. These wizards will make the necessary postings on your nominal ledgers to report each event. If you want to read more about these options in detail you will find a couple of links below.

You may find the following knowledgebase guide on ‘Sole Trader Bookkeeping’ helpful:

http://help.quickfile.co.uk/main/1/sole_trader_bookkeeping_-_the_basics.htm?searchTxt=sole%20trader&criteria=

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