Drawings

The amount of money or assets (money’s worth) drawn from a business by an owner for personal use is called Drawings. It is important to track the drawings in a business as it reduces the capital or the owner’s equity in a business.

For example, if a business owner of a software company buys 10 laptops and takes 2 of the newly purchased laptops home for his personal use, it will be called as Drawings.

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Related Terms

• Double Entry System
• Debit
• Depreciation
• Debit Note
• Deferred Revenue