Sole Trader - Accounting for capital introduced

[Joe]

Tag as a transfer from the ‘Proprietor Drawings Account’, you may find the posting below useful:

@Joe

The ‘Proprietor Drawings Account’ (1202) is a Balance Sheet account used to track both drawings and capital introduced, is does not have an effect on sales/income and therefore trading profits. Think of the Proprietor Drawing Account as a virtual bank account. i.e. transfers will reflect movements between the business/you personally and