Hi,

I've recently made some purchases for materials on my personal credit card. I usually add the transaction as paid from the 'owner's drawings' account. However, this gets a bit messy when trying to quickly see what is due to be repaid as the card isn't always paid in full and monthly. So I was going to create a 'personal credit card' account under equity where my owner's drawings account is.

But when I thought about that, it didn't make a great deal of sense. I am self-employed and not a limited company.
Should the 'personal credit card' account not be under liabilities instead? after all, as a self-employed person my business and I are 'one' and the same.

I assume keeping it under equity would represent personal funds being used to make purchases, regardless of the fact that fundamentally the credit card is a liability.

Thanks
DN

Hello Duncan,

Yes you are correct that as a self-employed individual there isn't much
difference between Equity and Liability accounts. It is fine to add a
'Personal Credit Card' liability account, then record non-business payments
using that card as described here
<https://www.solaraccounts.co.uk/help/how-to-record-non-business-payments>
but with the Paid From Account set to Personal Credit Card.

Hi.Thanks.I was actually referring to making business purchases on a personal credit card and using a seperate account to track these purchases instead. So instead of using the owners drawings account, using a newly created account. But I wasn't sure whether that should be under liabilities or assets.In your reply you referenced a personal or rather a non-business payment, was that a slip of the tongue so to speak i.e."It is fine to add a 'Personal Credit Card' liability account, then record non-business payments using that card".
Thanks DN

Hi Duncan,

What I meant was that if you enter your Personal Credit Card into Solar
Accounts, you will have to keep track of all transactions associated with
that card in Solar Accounts. For business transactions just record it as a
normal transaction (eg. a General Transaction from your Cheque Account to
Personal Credit Card account, or a Money Paid Out transaction paid from the
Personal Cheque Account and allocated to a business expense account). For
personal transactions you will need to record it as a 'withdrawal of funds
from the business' as described in my previous email.