Drawings Account

An owner may withdraw cash or other assets for personal use; we use a separate classification called drawings to determine the total withdrawals for each accounting period. Drawings decrease owner’s equity. They are recorded in a category called owner’s drawings.

• De-investment of the owner from business.
• Drawing is defines as withdrawal made by owner in the form of cash and other assets for their personal use.
• This will be reducing the owner equity account.
• This is the case only sole proprietorship and partnership.
• There is no drawing account in case of corporation. Drawing decrease owner equity in the business.

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>> Related Course Principles of Accounting.

Related Topics

Assets

Current Assets

Fixed Assets

Liabilities

Current Liabilities

More Interest

Long Term Liabilities

Expenses

Revenue Accounts

Types of Accounts

Owner’s Equity