Hi. We recently changed from ebing a sole trader to a company and as such we had to set up a new MYOB file and a new bank account. Money was taken out of the business bank account and put into the company bank account. How do I account for this in each MYOB file? Is it treated as owners drawings in the old MYOB (the sole trader one) and Owners contributions in the new company one? Or is there another way I ahve to do it? TIA.
Hi KT11,
Thank you so much for your post and welcome to the Community Forum!
I'm sorry for the delayed response. In cases like these, we highly recommend seeking direct assistance from your accountant or financial advisor to ensure an accurate and tailored solution. But in my idea, In the records of the sole trader's business, this transfer is treated as a withdrawal. Within the MYOB file for the sole trader, it's commonly logged under "Drawings," reflecting the extraction of funds from the business either for personal use or to support the establishment of the new company. This action symbolizes the owner (as a sole trader) withdrawing funds from the business to aid in the formation of the company.
Feel free to post again, we're happy to help!
Regards,
Earl
