Post by MS INYOFU (@theconscience)

ACCOUNTING HINT

Mistake: Not separating personal spending from business expenses

Correct: Treat the owner as a separate entity

Example:
Owner withdraws N40,000 for personal use - Dr Drawings, Cr Cash
Not an expense.
Business purchase N25,000 - record as the proper expense, not drawings

Why: Keeps profit accurate and prevents distorted accounts

Do you separate personal withdrawals from expenses?

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