Hi. I’m a Sole trader so the Retained Profit & Undistributed Reserves (3101) represents my salary. I post salary to the Proprietors drawings account. How can I clear this rolling figure at year end from QF. I’ve taken it and spent it!
Thanks
Hi. I’m a Sole trader so the Retained Profit & Undistributed Reserves (3101) represents my salary. I post salary to the Proprietors drawings account. How can I clear this rolling figure at year end from QF. I’ve taken it and spent it!
Thanks
There’s a “proprietor drawings” nominal of some sort in the capital and reserves section, you can clear your drawings “bank account” balance into there at year end by creating a transaction on the drawings bank account to bring the balance to zero and tag it using something not on the list.
Sole trader can’t have a salary. Everything they earn is already there’s.
What you do have is non business related expenses, which you tag as proprietor drawings
Hi
Thanks for your reply. I’m aware of the status difference but I treat myself separately from the ‘business’ with separate accounts etc. to simplify everything. I use proprietor drawings to pay my ‘salary’ and other personal purchases. It’s just that the proprietor drawings account will forever accumulate unless I can zero it at the end of each year.
Kind regards
Simon
Yes drawings account would accumulate, but so does Retained profit. If you look, you’ll see you’d need to create a journal and reverse both the day after year end by the amount drawn.
If you had a year end Retained profit of 5k but you’d drawn 20k your retained profit would show -15k when creating a year end journal (dated day after year end) to clear drawings, it would zero proprietor drawings and bring retained profit back up to 5k.
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