Drawings Account



Drawing is defines as withdrawal made by owner in the form of cash and other assets for their personal use. De-investment of the owner from business is called Drawings Account. This will be reduce 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.

 

>> Related Course Principles of Accounting.

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

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