How does a sole trader calculate the money he owes himself from his business?

Question

How does a sole trader calculate the money he owes himself from his business?

Answer 1

Legally, a sole trader *is* his business, so he can take any amount of money that he likes.  However, his creditors can sue for monies owed and cause the sole trader to lose his personal assets (his car, his house etc).

Answer 2

assets minus liabilities equals capital

Answer 3

Are you talking about what the sole trader pays himself or money that he or she has loaned to the business?

It's important for any business person to keep their business and personal finances separate.  Make sure that all business income and expenditure is accounted for.  If the business owner uses some of his or her money to buy something for the business, then they've loaned that money to the business and at some time it should be paid back.  

Work out what you want or need as a salary from the business and check that your income covers you for that as well as for all your business expenses.