I think to get a “good accounting practice” take on this, you may be best to run it past your own accountant (I’m not one). Personally, I would avoid mixing any personal transactions in the accounts unless they are business related (e.g. buying something using my personal funds). I’ve included a few links below from various topics where this has come up before on the forum, but ultimately, your accountant is likely to be better placed to advise on your exact situation.
- Suspense Accounts and personal transactions
- Suspence Account - how do I handle personal transactions?
- Personal and Business Transactions within a bank account
- What to do with private accounts?
As long as your profit and loss report is accurate, this is likely to be the most important part of your account, as there is no legal separation between sole traders (the individual) and the sole trader business.