Drawings
Drawings are cash, goods or other assets withdrawn from an unincorporated business by its owner for personal use. They reduce the owner’s capital and are not business expenses. Goods taken for private use are measured and recorded on the basis required by the question, commonly cost in FA inventory questions. A separate drawings account accumulates withdrawals before transfer to capital.
Worked example
A sole trader takes inventory costing $250 for home use: debit drawings $250 and credit purchases or inventory $250.
Common mistake
Drawings do not reduce the business’s profit. A company’s payments to shareholders require their own legal and accounting classification.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |