This explains how to record any money or assets you withdraw from your business for your personal use. This is known as owner drawings. This could be money, stock or machinery.

Owner drawings only apply to sole traders and partnerships. They do not apply to limited companies.

Are you a partnership?

If you are a partnership, we recommend you create additional ledger accounts for each partner.

Create a ledger account for each partner

1. From Settings, choose Business Settings.
2. From the Financial Settings section, select Chart of Accounts.
3. Select New ledger account.
4. Enter the details of the ledger account.
   • Name - we suggest you use Drawings and the name of the partner
   • Nominal code - we recommend that you use consecutive a number from your Drawings ledger account such as 3261
   • Category - choose Equity
   • VAT rate - choose No Vat
   • Visibility - choose Other Payment
5. Select Save.

Enter drawings as money

Check the ledger account visibility

This is to make sure you can select the ledger account when entering the payment.

1. From Settings, choose Business Settings.
2. From the Financial Settings section, select Chart of Accounts.
3. Select the row for the 3260 Drawings ledger account.
4. Enter the details of the ledger account.
5. For the Visibility - choose Other Payment and Save.

Enter the payment from a bank feed

1. Open your Incoming bank transactions page.
2. Find the relevant payment.
3. Choose Create.
4. From the What drop-down list, choose 3260 Drawings or the ledger account created for a partner.
5. Select Create.

Enter manually

1. Go to Banking.
2. Select New Entry then Purchase/ Payment. 
3. Select the  Other Payment tab.
4. Enter the details of the payment. Make sure you select the relevant Drawings ledger account. 

5. Click Save.

Enter a payment in stock or assets

For example, the owner has taken £25 worth of stock for their own personal use.

1. From Journals, choose New Journal.
2. Enter the Reference, Date and, if required, an additional Description.

3. Enter the following details then click Save.

   Ledger Account	Details	Debit	Credit	Include on VAT Return?
   5000 - Cost of Sales Goods	Owner drawings	0.00	25	Leave clear
   Drawings – equity (3260)	Owner drawings	25	0.00	Leave clear

4. If you reclaimed VAT on the purchase of the stock, you must include this in the journal. Enter the journal in the following way

   Ledger Account	Details	Debit	Credit	Include on VAT Return?
   5000 - Cost of Sales Goods	Owner drawings	0.00	22.28	Leave clear
   2201 - VAT on Purchases	Owner drawings	0.00	22.28	Leave clear
   Drawings – equity (3260)	Owner drawings	25	0.00	Leave clear