I have been doing some reading but am still unclear about how I record drawings as a sole trader. I understand I am supposed to do it as a transfer between the account I use for business purposes and the “Proprietors Drawings Account” but this will leave the money on the balance sheet when it should…

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 def…

Paulwk1972 8 May 2016 14:49 7

I just journal the drawings showing in 1202 over to 3100 once a month. This prevents the proprietors drawings account becoming an ever increasing asset.

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Sole trader drawings on P&L