Ledger posting_drawings

Vinay B L (IPCC Student) (49 Points)

13 August 2019  

Dear Members,

I have a vague doubt. I understand that the drawings will be reduced from the capital account. When the proprietor draws the money as drawings the effect would be on drawings account as well as cash account. Why the same is not reduced in the capital account when actually, it is a reduction from the capital? Kindly clarify. 

Thanks & Regards

Vinay B L