Anyone an expert on the above? My trading account and drawings account have never been correct. Can I use journal entries to reset them so to speak so they are the same as at least my business account??
You can use journals to fix anything you like as long as you are confident you can explain it if you get questioned by the tax man… In the case of a bank account where QuickFile’s view is out of sync with the bank’s view it would be better to fix the underlying error if you can - work back through your statements until you find the last point where the two sides agreed, then add the necessary transactions at that point to bring it back in to line. If you find a transaction that you can’t reconcile against a sale or a valid expense you can always tag it as a transfer to or from drawings.