Is Drawings a Liability?




    All the lessons on this site and much, much more...

    Accounting Basics: Complete Guide

    Available Now On


    Get Your Degree!

    Find schools and get information on the program that’s right for you.

    Powered by


    Subscribe to
    The Student Accountant newsletter

    Enter Your E-mail Address
    Enter Your First Name (optional)
    Then

    Don't worry — your e-mail address is totally secure.
    I promise to use it only to send you The Student Accountant.

    Is Drawings a Liability?

    by Gerry
    (Malaysia)



    Comments for Is Drawings a Liability?

    Click here to add your own comments

    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!.



    Enjoying this Website?
    Help Support it with a Donation

    OR...

    Advertise on Accounting-Basics-for-Students.com

    © Copyright 2009-2016 Michael Celender. All Rights Reserved. Click here for Privacy Policy.

    SBI
    SBI!

    More To Explore
    privacy policy