There is a typo in the “Sole Trader Bookkeeping - The Basics” knowledge base article (Sole Trader Bookkeeping - The Basics) under the heading, “Paying a business expense from your personal account”
The second paragraph here currently reads:
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Change the “Paid From” to the “Proprietors Drawings Account” nominate the paid from account as “Proprietor Drawings Account”
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Can anyone tell me exactly what this was supposed to say? I’m just getting my head around QuickFile and bookkeeping in general,so I want to make sure I understand this article correctly
Basically it means, when you pay a business expense from your private money/bank account to enter the source of funds (where the money is coming from) in your Proprietors Drawings Account.
For example you buy paper for your printer which is used in and for your business. You pay the paper with your private money and it doesn’t matter is it paid from cash, private debit card, private credit card, your private paypal account and so on. Whatever private source you used you enter it in your Proprietors Drawings Account.