Drawings Account

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Next Lesson: Owner’s Equity

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.


>> Related Course Principles of Accounting.

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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.