Sole Trader using sage Instant Accounts

[Michelle_Splicer]

Hi

I am a sole trader using sage instant accounts. I have been trading for a while and have under the advice of a fellow user been posting my own wages to a new Nominal code 3260 Drawings. I am now at my year end and unfortunatly cannot contact the person for further advice, so I hope you guys may be able to help.

What do I do now with the Debit balance showing in the Nominal 3260?

What other year end stuff do I need to do before running the year?

Thanks in advance

Michelle

[Alpha]

Hi

I am a sole trader using sage instant accounts. I have been trading for a while and have under the advice of a fellow user been posting my own wages to a new Nominal code 3260 Drawings. I am now at my year end and unfortunatly cannot contact the person for further advice, so I hope you guys may be able to help.

What do I do now with the Debit balance showing in the Nominal 3260?

What other year end stuff do I need to do before running the year?

Thanks in advance

Michelle

Move it :D


i'm afraid that you have been handling it incorrectly.

In sage 3260 is in the balance sheet section.

If you pay a number of people the entries on running the payroll would be

Dr 7001 or 7003 (for example) with gross wages
Dr 7006 with employers Ni
Cr 2210 with PAYE/Ni or if you really want to split PAYE NI then 2210/2211
Cr 2220 with net wages to be paid

When you pay these people then Dr wages (2220) and cr bank
when you pay ove the PAYE/Ni then Dr PAYE (2210) and Cr bank.


Hopefully this will make some sense.

[Michelle_Splicer]

Hi Alan

Thanks for the reply, sorry I not making myself clear.

I have the Nominals you mention which I use when I pay my staff but the money I take from the business for my self I was advised to post to a new nominal code which I set up of 3260 in the capital and reserves section. He then told me at the time what to do with these at year end but unfortunatly I can't find my notes from the time.

[Alpha]

Hi Alan

Thanks for the reply, sorry I not making myself clear.

I have the Nominals you mention which I use when I pay my staff but the money I take from the business for my self I was advised to post to a new nominal code which I set up of 3260 in the capital and reserves section. He then told me at the time what to do with these at year end but unfortunatly I can't find my notes from the time.


As a sole trader you don't neccessarily have to do anything.

I would suspect that the account is for simply showing drawings and I assume that you have a seperate account for any capital introduced :)

The only other thought is that for you to be able to see on a TB the drawings in that particular year you would have to journal the drawing in the year and the capital introduced to another account.

As this is the balance sheet you don't neccessarily need to do this before running your year end so you have time to go back and find your notes or contact whoever gave you the advice and ask for clarification.