Is it OK to create Proprietor Drawings Account for each year like
Proprietor Drawings 2016/2017
Proprietor Drawings 2017/2018?
Regards
No need to, once you are done with one year, run year end routine and system will carry foreword this year’s closing balance as opening balance to next year as starting point
Hi @awariat
I can’t see an issue with this setup, although is there a reason for doing it this way? There may be another way of doing it that would be easier
But starting point wont be “0” . But maybe you right. Maybe there is no big sense to do it.
I just use one drawings “bank account” across all the years but when I’ve sorted everything out at year end I add a final “money out” transaction on the bank account for the last day of that accounting year to return the balance to zero, and tag it as “something not on the list” to the drawings category under 3xxx (can’t remember the exact number off the top of my head, possibly 3100?). This means your year end balance sheet shows the year’s drawings under the capital and reserves section rather than assets, and you start again from zero for the next year.
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