Is Drawings a Liability?

by Gerry

Comments for Is Drawings a Liability?

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by: Kundana

Drawings means withdrawal of goods, cash, etc. for his personal private and domestic use.

We cannot call them liabilities or assets because the proprietor withdraws from his capital. They are just withdrawals and they are decreased from capital by debiting against the capital account.

by: Anonymous

Drawings are the opposite of capital, and such as they are not liabilities! Drawings means that the owner is pulling back his investment in assets. Drawings, in fact are withdrawals of capital invested, and because of that they are called drawings.

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