Sole trader drawings on P&L

The first thing you need to do is have a capital account for the drawings account. If you don’t have one on your chart of accounts, you can add one by going to More Options > Add Popular Accounts:

NOTE: Any sole trader accounts created since April 2017 will have this nominal account included by default.

Then you need to check what needs to go where. So in my example, I have introduced £5,000 capital to the business, and also taken £1,000 out:

If you have lots of entries, it won’t be as easy as looking at the rows - I’d recommend using the advanced search to get the figures:

Then you would create a journal along these lines:
1202 DR 5000 Capital (Proprietor’s Drawings Account)
3300 CR 5000 Capital (Capital Introduced for Sole Traders)
1202 CR 1000 Drawings (Proprietor’s Drawings Account)
3100 DR 1000 Drawings (Proprietor or Partner Drawings)

which would give you this result on the balance sheet:

As you see, this then specifically shows the capital introduced, and the drawings taken.

Hope that helps?

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