--%>

Meaning of drawing

What is the meaning of drawing in financial accounting?

E

Expert

Verified

We employ drawing numerous times in financial accounting. Drawing here means any amount withdraws from business for personal utilization. Not only cash however when we withdraw any product from business or any asset of business for personal utilization which will be drawing. This surely decreases the capital of any business. Therefore business man should record drawing in his books and hence accountant can compute accurate gain or loss of business man.

   Related Questions in Financial Accounting

  • Q : What is Account What is Account .

    What is Account. Explain briefly.

  • Q : DM/S$ currency versus currency bid-ask

    Provided the given information, state the DM/S$ currency versus the currency bid-ask quotations? Bank Quotations              American Terms        

  • Q : Why cash is so important Why cash is so

    Why cash is so important? Illustrate it.

  • Q : Closed-end country funds Write some of

    Write some of the advantages and disadvantages of closed-end country funds (CECFs) with respect to the American Depository Receipts (ADRs) as means of the international diversification.

  • Q : What bid price per widget should you

    You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land

  • Q : Cost of accidents to an employer

    Discuss the cost of accidents to an employer in from a perspective of why prevention is better than cure ?

  • Q : Direct loans-loan guarantees and credit

    Do you think that government of the country must assist the private business in conduction of the international trade through the direct loans, loan guarantees, and/or credit insurance?

  • Q : Super Profit Method in Goodwill Super

    Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis

  • Q : Internalization theory of FDI Explain

    Explain internalization theory of the FDI. Specify the strength and weakness of this theory?

  • Q : Maintaining the fixed exchange rate

    Explain why “Once  the capital markets are integrated, it becomes difficult for the country in order to maintain the fixed exchange rate”.