Is Drawings a Liability?

by Gerry
(Malaysia)



Comments for Is Drawings a Liability?

Click here to add your own comments

Is Drawings a Liability?.
by: Sam

Drawings be it cash or value in goods reduces owners capital. It does not qualify to be a Liability. Some applications and books will categorize it as Equity hence a debit entry on equity.
Mister
by: Jez Whiston

I don't know myself but on looking at my level 3 course they say it is capital.
drawings is assets or liabilities?
by: Mufleh

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.
drawing is assets or liabilities?
by: =mufleh

It is the amount of cash or value of goods within drawn from the business by the proprietor for his personal use. It is deducted from the capital. So we cannot say it is assets or liabilities, vwe say it's accounting. :)
Drawings
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.
NO.
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.

Click here to add your own comments

Return to Ask a Question About This Lesson!.








© Copyright 2009-2020 Michael Celender. All Rights Reserved. 
Click here for Privacy Policy.