Capital Introduced and then repaid as a Sole Trader

Question asked by LJ Pritchard 14 hours ago

I understand that if I inject some capital from my Personal Account to my Sole Trader Business Account, I allocate that as Capital Introduced. When I get that money back, should I just treat it as a drawing? Seems to me it isn't really a drawing as I'm just getting repaid?

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Hi LJ,

Yes, you can select Drawings or Capital Introduced, both accounts are apart of the Equity element on the balance sheet and will not affect the Quarterly calculations.

Tommy

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3 hours ago

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