Paypal and drawings to personal bank

1

Sole proprietorship

No company bank account, only personal bank account

  1. When paypal transfer to my personal account, can i record its as drawings?
  2. If no, when can i record it as drawings? ATM take out money?
  3. If i earn 100 at paypal and drawings to bank 100, so will my net assets and total equity become 0? if not, what value should be now?

my accountant just told me that i can record as drawings when paypal transfer to personal and no need care ATM date is he right??? i just afirad he is wrong…

thanks

2

If you do not believe your accountant, get another one.

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3

I tried contact many accountant, many of them dont want to listen too much of my case, two of them one said whatever i take how much of my paypal, my net assets still become 100usd, another one said i can record as drawings when paypal transfer to personal and no need care ATM date and my total equity will be 0 (just like the image)

i dont know who should i believe, because my deadline is next month 8…:frowning:

4

setup your Paypal as a bank account because you will be receiving money in this account.
when transferring money from your Paypal account to your personal account, record it as Drawings as instructed by your accountant.

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5

  1. So i dont need to care when i take out the money from my personal bank acc by ATM?

  2. If i earn 100 and transfer from my paypal to my personal bank acc, and record as drawings, my total equity(or net assets???) should become 0 now?

Thanks SOOOOOOOOOOO much, BIG THANKS!!!

6

your personal bank account has got nothing to do with your business in Manager.

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7

I dont really understand, please forgive me

Is that mean after paypal transfer to personal account (drawings), then my personal bank account has got nothing to do with my business, and no any info i need to record at my balance sheet?

So my total equity(or net assets???) should become 0 now because all of my money already transfer to my personal account (drawings)?

THANKS!!!

8

you do not have to create any account in Manager for your personal bank account.

  1. business income is recorded in your bank account created in Manager for Paypal. this will be the alternative for your business bank account.

  2. transfer of funds from your business account to your personal account will be recorded as Drawings.

  3. business expense, if any, can be recorded as expense claims. Use expense claims | Manager

i think you need to get some help locally from an accountant and learn few basics of accounting before using Manager. users on the forum can only help you regarding the use of Manager and not help you understand accounting.

9

Thanks so much, i almost solved my issue, i has read this Simplify equity accounting for sole traders / proprietors | Manager

Its told me that

  1. Post all draws to Owner’s equity .
  2. Enter the description Draw for withdrawal line items.

How can i post draws to Owner’s equity?
I tried

  1. Receipts & Payments
  2. New Payment
  3. Enter description to record a notes for my draw

is thats right?

I will contact my accountant tomorrow, today i may made he so angry…because i dont believe him…i am not dont believe him…i just wannna know more info about what will he do in balance sheet :frowning:

Thanks

10

@heyjo00as, your questions have been answered, both here and in the other topic where you asked the same questions. You have been told that you need to learn about accounting before you can use Manager. There are many sources online.

I am closing this topic.