have added capital to our sole trader company and now wish to begin paying it back. How do I show this as an expense which comes off the original capital figure?

In QuickBooks Sole Trader, you can record the payoff as an owner's deposit to track it as an expense and enter the capital as an owner's deposit, Elaine.

Here's how:

1. Go to the Transactions panel and select Bank Transactions.
2. Click New Transaction.
3. Set the Type to Expense for the payoff and Income for the capital.
4. Choose the Owner's withdrawal for the expense and Owner's deposit for the capital.
5. Enter the amount, complete the required fields, and click Save.

During the process, I recommend consulting your accountant to ensure your records are accurate. You can also find other suitable categories for your transaction in QBST by clicking the information icon next to each category.

For additional help with categorizing transactions, refer to this article: Categorise bank transactions in QuickBooks Sole Trader.

This thread will stay open for any questions or clarifications about navigating QBO. We're always here to help.