Hi, my accountant says that the Proprietors Drawings Account should be in capital and reserves section as it is by definition capital account. I QF it defaults to current assets on the balance sheet. This has the effect of overstating of capital and resources of the company ie total equity/total net assets.
Can you let me know your thoughts please…
Hi @fanny159
That sounds correct. QuickFile treats it as a bank account for ease of tracking what the proprietor owes the business, and vise-versa. As part of the year end process, you can move the balance to the relevant nominal codes in the Capital and Reserves section.
There’s a post explaining this here, which will hopefully help.
Although, please do let us know if we can assist you further 