Drawing account

drawing account
The contra owner's equity account that reports the amount of withdrawals of business cash or other assets by the owner for personal use during the current accounting year.

Drawing Account:
A drawing account is the amount of cash drawn out by a sole proprietorship and by partners of a partnership,. The drawing amount reduces capital in a sole proprietorship and a partnership. It is nontaxable for income tax purposes.

DRAWING ACCOUNT - an account used to track withdrawals
DRAWOR - The party who writes a draft or check against funds he or she owns. Also called payor.

drawing account
provision allowing a personal withdrawal of cash or other assets from a proprietorship by the owner. It is in effect a disinvestment in the firm and reduces owner's equity. The entry is to debit the owner's capital and credit cash.

Drawing Account
An accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships.

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The withdrawals account is the account used to record the transfer of assets from a business to its owner. This is also known as the personal account or drawing account.
Working capital ...

drawing account An account used to track withdrawals, such as withdrawals from a partnership or proprietorship by a partner or owner. drawn securities Securities called for redemption.

See also: Expense, Proprietorship, Away from you, Acquisitions, Capital account