Recording home mortgage payments for a sole trader

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AMCC
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Recording home mortgage payments for a sole trader

Hi,

 

My partner is a sole trader & for various reasons has decided that our home mortgage payments need to be paid out of the business bank account each month.

How do I record the payment & what accounts do I need to use when the payment is debited from the bank?

I assume it would be a spend money but would it be to an expense account or a liability account?

 

Appreciate any help/response!

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Ultimate Partner IanChait
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Ultimate Partner
Australia
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Re: Recording home mortgage payments for a sole trader

Hi @AMCC 

 

As this is a private payment and has nothing to do with the business, you should use an Equity 3-XXXX Account called Drawings. This is treated the same as taking money out of the business for personal expenses.


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

AMCC
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Re: Recording home mortgage payments for a sole trader

Hi Ian,

 

Thanks so much for your reply - totally makes sense!

 

Cheers!

Ultimate Partner IanChait
1,032 Posts
Ultimate Partner
Australia
Ultimate Partner

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746Kudos

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Re: Recording home mortgage payments for a sole trader

HI @AMCC 

 

Glad I could help.

 

Would you please be so kind as to mark my reply as an Accepted Solution.

 

Thanks.

 

 


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

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