Home Expenses

ybolg

Hi

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

Thanks

Ybolg

Anne Boleyn

Use of home expense

Hi

Dr Use of premises/home
Cr Drawings

Hope this helps.

Psyche

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

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.