DRAWINGS EFFECT

This topic has 1 reply, 2 voices, and was last updated 6 months ago by John Moffat.

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November 15, 2025 at 3:43 pm #723555
petestudentacca
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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
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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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