Sole trader opening balances

[davepikecs]

If I want to put start-up capital in as a sole trader can I just physically transfer £500 into my business account from my personal account and tag it in Quick file as a transfer from proprietor drawings account.

Then use this money to pay off any expenses for the coming month then at the end of the month when my first invoice gets paid can I just transfer that same £500 from my business account back to my personal account and tag it in Quick file as a transfer to proprietor drawings account.

Hopefully this will keep the bank accounts straight.

This seems a very simple solution so I was wondering is it correct?

[rhc]

Hi,
If it is a opening balance go to your bank account>>More options>>Account settings and enter your opening balance. After that, create a journal for bank account and Capital introduced.

Journals

Introduction Journals offer a simple way to transfer funds from one nominal account to another. They are generally used by accountants and bookkeepers to quickly fix problems and close off accounting periods. Journals are entered in pairs and involve a simple debit and credit, one line representing a debit from a nominal account and another a credit to the opposing account. You can enter multiple pairs or groups on one single journal providing the amounts balance. How do I enter a journal? Y…

If you introduced the money later, you can do it as you did or tag it from your bank account as ‘something not on the list’ and select ‘capital introduced 3300’

Hope this helps

[davepikecs]

Hi, thanks for your reply
I have added an opening balance which created a journal

You then said I should create a journal could you please tell me which nominal codes I should use.
Thanks in advance

[rhc]

Hi,
In that journal change suspense account to 3300 capital introduced. If you don’t have that account you can create one.

[davepikecs]

Hi rhc
Seem to be getting there now

Would nominal 3300 capital introduced for sole traders need to be cleared down at some point.
Thanks again

[cbstephensaca]

Yes, you can. You can separately identify capital introduced and drawings if you wish, but you can also just use one account for money in and out.