I seem to get different answers from Accountants regarding the posting of Owners drawings on Sage (Sole Traders), what does anyone think as regards posting them to 7001 (gross wages), or 3001 (Capital introduced).
Definitely not post to any of the wages expense accounts, drawings are not a business expense, they do not get posted to the Profit & Loss account, they are a Balance Sheet item. I usuall create a Drawings nominal account in the 3000's Capital and Reserves group of nominals. When you post owners drawings, you will be crediting the bank (or cash) account and debiting the drawings account.
The Capital Introduced account is a credit account, a liability to the business, it is money owed by the business to the owner. The Drawings account is the opposite, it is money that the owner is taking back out of the business. The two need to be kept separate from each other and appear as separate items in the bottom half of the balance sheet.
