Starting balance Trading Account for new year
Hi
Having an issue with my starting balance in MYOB for the new year. It appears that my balance just keeps rising each year and suspect I am missing 1 procedure re Shareholders drawings maybe.
What tranaction should I enter for $ paid out to shareholders for drawings that will/should reduce the starting/ trading account balance.
Had my admin person do this before and now I am trying to find my own way - sorry may be a stupid question but I would appreciate your help.
Hi DanC2024,
Thanks for your post, and welcome to the Community Forum!
In situations like this, consulting with an accountant is often recommended for an accurate solution. However, for a general idea, you can use either a journal entry or a spend money transaction. Here are the steps you can follow:
Create a Journal Entry or Spend Money Transaction:
- For a journal entry, select the appropriate accounts, debiting the Drawings or Shareholders' Drawings account and crediting the Cash or Bank account.
- For a spend money transaction, directly record the payment to shareholders for drawings.
Enter the Amount: Input the specific amount paid out to shareholders for drawings.
Date the Transaction: Use the date when the payment was made for the transaction date.
Save the Entry: Save the journal entry or spend money transaction to record the transaction accurately in your accounting system.
Feel free to post again, we're happy to help!
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Regards,
Earl
