The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> VT Accounts Drawings
Post Info TOPIC: VT Accounts Drawings
Graham Carver


Newbie

Status: Offline
Posts: 1
Date:
VT Accounts Drawings
Permalink  

Which  Ledger should Drawings be placed on? Historically I have been putting them on as an Expense which is obviously wrong.

Please be kind with replies as I am not an accountant.



__________________
graham carver
lots to learn


Senior Member

Status: Offline
Posts: 330
Date:
Permalink  

Hi Graham
I'm assuming drawings as a sole trader/ partnership?
What software are you using?
Drawings would go on the Capital Account. Capital - Drawings

__________________

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Casu


Senior Member

Status: Offline
Posts: 359
Date:
Permalink  

Graham Carver wrote:

I am not an accountant.

Just so you know for future, this is a forum for professionals not business owners.



-- Edited by Casu on Saturday 4th of April 2020 12:47:29 PM

__________________

Caron
Casu


Senior Member

Status: Offline
Posts: 359
Date:
Permalink  

lots to learn wrote:


What software are you using?  

 

VT. It was in the heading.smile

 



__________________

Caron
Shamus


Forum Moderator & Expert

Status: Offline
Posts: 11981
Date:
Permalink  

Graham Carver wrote:

Which  Ledger should Drawings be placed on? Historically I have been putting them on as an Expense which is obviously wrong.

Please be kind with replies as I am not an accountant.

Hi Graham,

first up, you need to ensure that you have set your business up as the right sort of account for a self employed business.

in the capital  account if you have chosen the correct business form there will be three headings

 - Bought Forward

 - Capital Introduced

 - Drawings

If you do not have the above you may need to start again (I have seen some self employed set up VT as limited comanies!).

Brought forwards comes from prior periods and the P&L. Drawings of course reduces the capital account but as you so rightly state, it is not an expense. Currently you are of course effectively reducing your pre tax profit by pushing it through the wrong account so you will need to reverse all of that out. Do not confuse the capital account with the money you pay tax on. Thats an adjustment of the figure in the P&L.

Thankfully at least VT makes that pretty easy to reverse incorrect entries (just not incorrrectly set up businesses).

Hope that your business is weathering this storm well,

all the best,

Shaun.



__________________

Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> VT Accounts Drawings
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About