Confused on Proprietors Accounts

You can use either 3100 (drawings) and 3300 (capital introduced), in which case your entries look fine. Or, you can use 1202 for everything. The difference is that 1202 is a “bank” account in the chart of accounts, so you can just set up money in or out as a transfer to/from the business account to the proprietor’s account. If all you do is either put money in, or take lump sums out, 3100 & 3300 work fine. If, though, you want to pay a business invoice off using your own account, for instance, you could 1202 works better as QF recognises it as a bank account, so you can create a supplier payment, which you can’t do from 3100.

Whichever is easier for you really. You can always change later, or use a mixture. At year-end, you just add together those 3 accounts to get your drawings/capital figure for the accounts.

In terms of the monitor arm, if it’s less than £150, don’t bother using fixed assets, just use an overhead code instead (7000-7999 range).

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