Hi...
I'm fairly new to the world of Solar Accounts, so apologies if this is an obvious one.
I'm Self Employed, and trying to represent paying for expenses out of my personal account. I read this page:-
http://www.solaraccounts.co.uk/help/how-to-record-use-of-personal-funds.php
The problem I have is that when I register a payment from the "Owner's Drawings and Personal Use" account, it shows as an 'increase' when I check out the account activity. This doesn't make sense... surely it should be a decrease!?
Any advice or guidance would be greatly appreciated. :)
Andy
Hi Andy,
I can see that it is a little odd, but it is correct to increase the balance of the "Owner's Drawings and Personal Use" account. This account behaves in an unusual way - when you withdraw money from the business the account balance decreases and when you add money to the business the account balance increases.
To be honest it doesn't really matter which equity account you choose as the 'Paid From Account'. If you prefer, you could use the 'Owners Capital' account instead. This represents money you have put into the business so you may find it more intuitive that the balance of this account is increased when you pay for a business expense with your personal funds.
Regards,
