Account for client payments received in personal account

1

So I’m aware this is not the greatest situation but I have some historical sales invoices that were paid into my personal account and I’m wondering how to account for them. When recording the payments I created a cash account which now has a positive balance. How do I deal with that positive balance since it is not ‘real’ and was never physically transferred to my business account? Also, how do I properly take money from my business account to pay myself (sole trader).

Thanks!

2

As you never physically transferred the funds you should delete those “not real” cash account transactions and replace them with Journals where you would Debit the Drawings account and credit the Accounts Receivable + Invoice

To take money to pay yourself - Spend Money with account Drawings

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3

Thanks!