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Drawings in simple bookkeeping spreadsheet

  • Member
  • Practice Licence
  • 9 posts
  • # 114816

Hi, 

My friend has just gone self-employed as a copywriter, so I said I'd do her books for her for free to give me some much needed experience. She has very little in the way of payments or receipts, so I've just put together a simple spreadsheet, with a sheet for payments, one for receipts and then a overview sheet which brings it all together for P&L. 

Last month, she took £60 out of her business account as 'drawings', which I've added to her outgoings, as it's come out of her account. However, it's not an expense as such, so now i'm not sure what to do with it. She's about £25 away from breaking even, so with this £60 taken into account, she is actually £35 in profit.... I'm just not sure how to show it!

Any help would be gratefully received! Thanks!

  • 13 posts
  • # 114819

Hi,

Drawings is a current liability so belongs on the balance sheet, not on the Profit and Loss sheet.  Hope this helps.

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