Forum Message

Owner's Capital in cheque account

Hi Mark

I have been using Solar since 2009 and love it! However, when I first moved my business over to the new accounting system I had a business cheque account with a balance of £5902.21. I inadvertently recorded this amount as Owner's Capital - where it has been ever since!

I realise my mistake but don't know how to correct it. I need to move the amount out of Owner's Capital but where to? The cheque account balance is correct so it can't go there.

hope you can help, as always -
Many thanks
Sarah


Posted by Sarah Boyson on Sep 20, 2011 8:12 AM BST

Hi Sarah,

If the business had a bank account and no other assets or liabilities then it would be normal to have the Owner's Capital balance equal to the Cheque Account balance. This just says that the business owner ultimately has a claim over the money in the bank account.

Regards,


Posted by Mark McLaren (Solar Accounts) on Sep 20, 2011 9:06 AM BST