I need to introduce capital for a sole trader and, after reading through various topics, can you confirm please if the following is the correct way to record this?
Input a transaction against the relevant bank account as money in, then tag it against ‘bank transfer between accounts’ and select the proprietors drawings account?
It would be beneficial to have a separate capital introduced account to see the amounts clearly throughout the year. I have also read that there is a capital introduced nominal but it’s not in my list (3300). Was this removed at some point? I know I can create a nominal but as 3300 keeps coming up in topics, I am reluctant to create a new one as it doesn’t use this number, does it have to be 3300?
Not sure where you are getting 3300 from as under the capital and reserves area of the chart of accounts you have available (as given) just 3100 (proprietor or partner drawings). This, I find, is the best one to use as it is set up like a true capital account, where an increase (ie cash introduced) is recorded as a Cr entry and any deductions/reductions are Dr entries in double-entry speak.
Thanks and the 3300 has been mentioned alot in this community help forum, which is why I raised it. But I have started to use the proprieter or partner drawings nominal account, it’s just that I am used to Sage where you have one for Capital Introduced and one for Drawings so I was assuming there would be a similar set up. I understand that the Drawings account functions the same but just cuts out one of the nominals
