Ireland balancing figure in balance sheet

[dawndawn]

Hi
I have net assets figure for top half of balance sheet-current assets minus current liabilities. No fixed assets. For bottom half of balance sheet I have opening capital from last year's account, plus profit from profit and loss account.

Am I right in saying that drawings is the balancing figure but should it match the drawings per what was drawn out of bank account that didn't have anything to do with sole trader business?

Thanks

 

[Samir]

A lot of times when I'm having to re-create (or create) a balance sheet that doesn't have anything to tie in with, I just lump everything into partners equity, as essentially that's what it should be.

 

[dawndawn]

Thanks for reply. So just to clarify if should increase sole traders capital and leave the drawings figure matching the drawings as per the bank statements?

 

[Samir]

That is typically what I would do, especially if you have documentation for the draws.

 

[dawndawn]

I've done the accounts now but if I match my drawings figure to the bank statement personal withdrawals, the Net profit from profit and loss account, and if you say I adjust the capital figure to make it balance, in this case, I'm reducing my capital? Is that right?

 

[Samir]

Depending on which way you are off, you might be reducing or increasing the capital accounts. It won't matter which way because you'll be in balance when you are done.