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Home Expenses

ybolgybolg New MemberRegistered Posts: 9
Hi

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

Thanks

Ybolg

Comments

  • Anne BoleynAnne Boleyn Well-Known Registered Posts: 196
    Use of home expense

    Hi

    Dr Use of premises/home
    Cr Drawings

    Hope this helps.
  • PsychePsyche Well-Known 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.
  • MonsoonMonsoon Font Of All Knowledge 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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