It was my clients first year of trading. I enetered all cash receipts into money to be banked and entered all the cash payment paid from this and what was left I paid to drawings.
There was also a number of bank payments from their personal account for business expenses, so I enetered these and paid them from bank account and did a transfer from drawings to clear that overdrawn bank account.
My problem now is, the "bank" is clear, but the drawings figure in the equity part of the balance sheet is a negative figure, how can this be?
I would have been inclined to enter payments made from personal funds to Capital Introduced a/c, rather than Drawings. That way you can see at a glance what's going on
It is possible to get a -ve balance the way you are doing it if the client pays for more than he draws for himself.
