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What is drawings account? - Commercial Applications

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प्रश्न

What is drawings account?

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उत्तर

The Drawings Account records the cash or goods withdrawn by the owner for personal purposes. It is treated as the owner’s personal account. The main purpose of maintaining this account is to provide a clear record of the owner’s yearly withdrawals and to avoid excessive entries in the Capital Account. At the close of the accounting year, the total of the Drawings Account is transferred by debiting it to the Capital Account.

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पाठ 11: Nature and Terminology of Accounting - QUESTION BANK [पृष्ठ १३५]

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सी. बी. गुप्ता Commercial Applications [English] Class 9 ICSE
पाठ 11 Nature and Terminology of Accounting
QUESTION BANK | Q 3. | पृष्ठ १३५
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