Page 116 - Office Practice and Accounting -9

Drawing
Drawn cash by proprietor Rs. 9000 for personal expenses.

Date Particulars LF Dr (Rs.) Cr (Rs.)
Drawing A/c..................... Dr. 9,000
To Cash A/c 9000
(Being cash drawn for personal
purpose )

Drawing is withdrawal of capital. When the proprietors take the cash or kinds (goods,
assets) from business for personal use, it is drawing.

Here, drawing account is debited because it reduces the capital. Decrease in capital is
debited and cash is going out, so it is credited.
Goods of Rs 3000 taken for domestic use.

Date Particulars LF Dr (Rs.) Cr (Rs.)
Drawing A/c..................... Dr. 3,000
To purchase A/c 3000
(Being goods drawn for
personal purpose )

In this transaction drawing account is debited and purchase is credited because there
is decrease in purchased goods in business.

Interest on Drawing

Interest on drawing charged Rs 600.

Date Particulars LF Dr (Rs.) Cr (Rs.)
Drawing A/c..................... Dr. 600
To interest on drawing A/c 600
(Being interest charged on
drawing)

Here interest on drawing is income so it is credited and interest is charged on drawing
(personal account) so drawing is debited.

112 Office Practice and Accounting 9