Drawings was not Nil down at year end

Hi Glenn,

Alex here from Mc Cabe & CO

when i ran Y/E closure the drawings figure of £300 has come forward to new year, and should not have? can you have a look please…its Palmers Barn a/c 6131431646

cheers

As a Sole Trader business 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.

I see you have a created a ‘Owners Loan’ nominal code, therefore when tagging the drawings figure of £300.00 it should have been tagged to this nominal code.

To correct, simply enter a journal as follows: