Hello again,
Are you able to help me, I am trying to transfer the drawings from code (3100) to (1202)
As i understand as a sole trader all my drawings should be in code (3100)? I can’t seem to find any option for this.
Thanks in advance.
Try journal it, its under Reports> Journals
I tried this and it adds more to the total drawings.
I just put a money out transaction on the drawings bank account on the last day of my accounting year and tag it to 3100 using the “something not on the list” option.
Re your “it adds more to the total” comment when using journals, remember that when you’re dealing with bank account nominals in a journal the debit and credit columns are backwards from what you’d expect if you’re used to looking at bank statements - money in is a debit and money out is a credit. Bank statements are from the bank’s point of view so when you pay money in they see it as money moving out (credit) from you and in (debit) to their big pile of cash.
Thanks ian, you seem pretty onit, I am still a slight confused. I hate accounting! And I think i understand. I mean as a sole trader, Do the Drawings account get declared as its just a virtual bank account that is not relevant
The function for making journal adjustments does assume an understanding of double entry book keeping. The interface could do with being updated to make things clearer for non specialists.
What do you call 1202 account? Is it some bank account?
Its just a nominal code i think
What is the nature of code? Why do you want to move drawings from 3100?
Because 3100 is drawings
I have a balance in both codes, and i think only one should have a balance
The usual way I work is to use the drawings “bank” account day to day through the year to record money I take out of the business and smaller things I buy for the business with my personal cash/card/etc. For larger chunks of capital I tag straight to the “capital introduced” code.
At the end of year I zero the balance on the “bank” account with a transaction tagged to 3100. So 1202 is effectively a running total of this year’s drawings and 3100 is the accumulated drawings from earlier years. I may end up moving things around again once my accountant has done my tax returns - this is only my second year in business.
To add to the points above, you may wish to take a look at this post too:
http://community.quickfile.co.uk/t/sole-trader-drawings-on-p-l/12072/4?u=qfsupport
Ok so i will just leave the codes alone and at end of tax year move everything to 3100. Its just for personal stuff mostly my drawings is that correct?
I am going to simplify things by not recording personal purchases.
I understand what you mean,
As i have all my personal bank accounts linked i have tagged personal transactions that are not to do with business as personal drawings.
I then have a few business transactions that are tagged as an expense.
In the future i want to simplify this. So to do this i would need to use the drawings bank account and input any small purchases for my business, like office supplys etc.
Then at the end of the year you zero the balance so you don’t pay tax on the business expenses. Is this correct?
I am mainly confused because i have a balance in these two;
1202 Proprietors Drawings Account 4,223.94 -
3100 Proprietor or Partner Drawings 2,020.49 +
Thanks again!
Scott, like you I am a sole trader. Remember that there is no legal separation between you and your business and any money you take out of the business that is for personal use (e.g. a meal out with your partner, buying a new tv) must be recorded as drawings in your books. Drawings is a capital account (in book keeping and ‘T’ accounts terms) so if you take, say, £100 as drawings, you would debit drawings a/c (decrease) and credit your bank (decrease). If you introduce personal money into the business, the entries would be debit bank (to increase) and credit capital account (increase).
Personally I prefer to record all instances of drawings directly to nominal 3100 (proprietor or partner drawings) as this sits in the capital and reserves section of your balance sheet. Although important to record ins and outs on drawings, it is really for your own information as hmrc are only interested in taxable net profit.
Thank you for this. I think I understand now I’ll leave it as it is I guess. If I introduce my own cash I’ll put it as capital introduced
Although my personal accounts are not nesssecary to be on the accounts. Like it’s not cash introduced to business. Such a mess 
like I added. A personal credit card to account . I have few personal accounts
So as what I understand is that you would like to draw cash from the business e.g a profit which you have earned
Once cash is withdrawn from the bank.
Tag the bank transaction to nominal 3100 which is drawings