Home Expenses

ybolg Registered Posts: 9 Regular contributor ⭐ 😼 ⭐

Does anyone know what the double entry would be if a sole trader is claiming a percentage of home running costs?




  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 🎆 🐘 🎆
    Use of home expense


    Dr Use of premises/home
    Cr Drawings

    Hope this helps.
  • Psyche
    Psyche Registered Posts: 187 🎆 🐘 🎆
    You wouldn't credit equity? You'd put it through as negative drawings?
    I'd credit equity, since the owner is effectively putting value into the business in the form of office facilities.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
    I was always told to credit drawings and have done ever since.

    To me, drawings is a current account and represents day to day money in and out. I'd only credit capital if it was a significant and one-off type injection of cash/ other funds.
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