Business Account- Personal Account, the fine line

[mike54]

Hi,

As a sole trader, I have a business account, a personal account with a deposit account linked to it (a direct debit from personal account to feed the deposit account).
I use the deposit account for raining days (National holiday’s periods, Christmas periods when work is rare)
I pay myself with a drawing from the business account.
The first fourth months in trading, I had only my personal account, but I easily managed to identify what was business related (not much going on the account for personal activity)

I found it a bit difficult/confusing for me to find the fine line in between personal bank account and business bank account as a self employed person, both accounts belong to me so when I’m doing my tax assessment Form 11 Capital account & balance sheet items, what is :

Cash/capital introduced
Cash/bank (debit)
Bank/loan/overdraft (credit)

Is that all from business account only or both business & personal account?

Thanks

 

[papervalue]

Hi,

As a sole trader, I have a business account, a personal account with a deposit account linked to it (a direct debit from personal account to feed the deposit account).
I use the deposit account for raining days (National holiday’s periods, Christmas periods when work is rare)
I pay myself with a drawing from the business account.
The first fourth months in trading, I had only my personal account, but I easily managed to identify what was business related (not much going on the account for personal activity)

I found it a bit difficult/confusing for me to find the fine line in between personal bank account and business bank account as a self employed person, both accounts belong to me so when I’m doing my tax assessment Form 11 Capital account & balance sheet items, what is :

Cash/capital introduced
Cash/bank (debit)
Bank/loan/overdraft (credit)

Is that all from business account only or both business & personal account?

Thanks

If you have done a full p&L and balance sheet items mean

1. capital introduced- Private money lodged into business account to support business

2. cash debit- what is left in business account at year end

3.bank loans/overdraft- any business loan/overdaft

My advise to you is as your business is so small the balance sheet in your case means very little

get the profit and loss right and put in nil for balance sheet items