PL & BS for Owner & Firm

Hello,

Is it possible to have two different PL & BS with regards to Sole Proprietorship firm and its Owner.

To do that, add a second business for the owner. You can have as many businesses as you want. See https://www.manager.io/guides/9265.

Its not about multiple business of owner… We are required to prepare separate PL & BS for business and owner which results in intra movement of funds sometimes and few adjustments to be done. So just was curious if it can be done here.
Creating a separate business wont serve same purpose.

If you want separate balance sheets, you must set up two “businesses.” Separate profit and loss statements could be created within one business by using tracking codes. Understand that a “business” in Manager only refers to an accounting entity, which can be a proprietorship, a partnership, a corporate entity, a trust, a non-profit charity, or an individual.

So you would create your two businesses, one for the sole proprietorship, one for the owner as an individual. Movements of funds between the two would be handled as payments and receipts to and from the other.

Thanks tut

let me try this out… right now not sure if this will work or how to make it work…
Bit doubtful how i will move entries between the two … but will look…!!!

I am more of technical person than accounting one so lil bit of confusions creep in :confused:

Would request if anyone maintaining sole proprietorship business and preparing separate final accounts can guide or show way then would be of great help :slight_smile:

You will not. You will make separate entries in each “business.” For example, when an owner of a sole proprietorship makes a draw on the company, that is entered in Manager with a payment transaction. The payment debits Owner’s equity and credits the company bank account. If the owner is also maintaining personal finances in Manager, the money is entered as a receipt to the personal bank or cash account, posted to a personal income account. So the single act of taking money out of the company becomes two transactions, one in each business.

You really have to ask yourself whether it is worth the effort of maintaining double-entry accounting for personal finances. Seldom do personal tax filings or other events require true financial statements for individual finances. The same information that would support personal accounting in Manager is usually sufficient for direct entry in things like loan applications, income tax filings, etc. But that is a personal decision having nothing to do with Manager itself. If you want to go through the work of maintaining double-entry accounts for personal finances, Manager will definitely support that.

Thanks… this clears my doubt :slight_smile:

We do require to prepare two different financials as per our Govt’s Income Income Tax Return filling requirements.