How To Account For Sole Trader Drawings If Self Employeed

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Hi, how would I add sole trader drawings if I am self employed?

  1. Peter Connor May 14, 2014
    Hi Hitek,

    Are you a sole trader or limited company? Are you talking about salary, expenses or something else? Sorry for Q's but people use the term drawings for a lot of stuff.

    Thanks

    Pete

2 answers

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finnrichards January 13, 2015
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Hi Brendan & Peter,
I’m still not seeing how I’d process this payment though – I can add a new account as per Brendan’s description and it saves etc. But when I go to pay myself what do I do then?
Finn

#answer-1111
  1. Peter Connor January 13, 2015
    Hi Richard,

    We (Bullet) can't advise you on that as we're not an accounting firm. If Brendan doesn't come back you'll need to seek an accountants advice.

    Thanks

    Pete
  2. Brendan_Brady January 13, 2015
    Hi Finn

    After you have set up the drawings account, you can go to My Company, Manual Journal Entries, New Journal Entry, Debit Drawings and Credit Bank Account.

    Let me know if this works out.

    Brendan
  3. Peter Connor January 13, 2015
    Tks Bren,

    Pete
  4. finnrichards January 13, 2015
    Hi Brendan & Peter,

    I'll give that a go, thanks a mill.

    Finn
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Brendan_Brady ⋅ Community Accountant - Brady Associates May 22, 2014
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Hi Hitek
 
You will need to create a new nominal account for Drawings under Reserves as follows:
 
Company > Chart of Accounts > Create New Account:
Type: Equity
Name & Description: Drawings
Review and save.
 

#answer-518
  1. Peter Connor May 22, 2014
    Hi Brendan,

    Thanks for updating that.

    Cheers

    Pete

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