Ledger posting_drawings

CPT 182 views 2 replies

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

Replies (2)
Transfer the drawings Accounts to Capital Account.
capital
To Drawings.
Thank you for the clarification.


CCI Pro

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