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DRAWINGS EFFECT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › DRAWINGS EFFECT

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  • November 15, 2025 at 3:43 pm #723555
    petestudentacca
    Participant
    • Topics: 11
    • Replies: 3
    • ☆

    Hello Proffesor,

    Please can you expalin to me why drawings are on debit side, and not credit?

    Thank you

    November 16, 2025 at 10:14 am #723562
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    Because it is a reduction in a liability. It reduces the amount owed to the proprietor. The amount owing to the proprietor at the end of the year is the capital (which is a credit balance) less the drawings (which are a debit balance).

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