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.


Related Terms

Switch to smart accounting software. Switch to Zoho Books.   Start my free 14-day trial

Books

Manage your business accounting online