Retained Profit & Undistributed Reserves

How-to
1

If I have retained profits of £3000 from the previous tax year and wish to take this money out of the business.

Do I transfer the £3000 from my business account to my personal account then tag it to the nominal ‘Retained Profit & Undistributed Reserves’ (3101)

Is this the correct way to proceed

Thanks in advance

2

No, just record payment using dividends code

3

Thank you for your reply, I forgot to mention I’m sole trader so I do not have a dividends code

4

Then retained earnings are not relevant at all

5

Thank you for your help.
So how do I remove them from the balance sheet?

6

Recording drawing should reduce it

7

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