sole proprietorship with respect to my PERSONAL books?

[jcard21 xxxxxxx]

On Wed, Feb 13, 2013 at 3:26 PM, Paul Elliott
<pelliott at blackpatchpanel.com> wrote:
>
> I will have 2 books=files, one for my sole proprietorship, the other
> for my person. Everybody said I had to do it that way.  I understand
> that money I initially put into the business will be "balanced" by an
> equity account called "Opening Balances". When I remove money from the
> business, it will be balanced, by an equity account called "Drawing
> Account".
>
> But how should I view these transactions from the point of view of my
> PERSONAL books? When money disappeared from my personal bank accounts
> to start the business, what is the "other half" of that transaction on
> my personal books? When later money appears in my personal accounts
> from the business, what is the "other half" of those transactions?
>
> Should I create PERSONAL accounts under equity, that will move in the
> opposite way as the corresponding business accounts? What is the
> canonical way to do this? What should be the name of the accounts,
> when things are done the "standard" way?
>
> Thank You for reading/answering my dumb question.
>
> --
> Paul Elliott                               1(512)837-1096
> pelliott at BlackPatchPanel.com               PMB 181, 11900 Metric Blvd Suite J
> http://www.free.blackpatchpanel.com/pme/   Austin TX 78758-3117

Paul, your confusion is caused by the fact that you still have not
completely separated your personal financial life from your business
financial life.

Your computer records (books) are separate, but your bank accounts are not.

I'd like to see how you reconcile your bank accounts! :-)

Read this short article:

Keep Your Business and Personal Finances Separate
http://www.entrepreneur.com/article/204862

--
jcard21