Question

Drawings appears in which side of the balance sheet

Answer 1

Drawings happen in the business only when properitor use any goods form the business for personal use.. So that s why it is deducted from the capital, which is the liability of the business..


This shows that drawings are shown on the liability side in balance but it is only deducted from capital otherwise whenever there is no capital is the sums than it means no drawings will be less...


BALANCE SHEET

LIABILITIES......... ASSETS.........

capital
- drawings
(........)

Answer 2

Drawings refers to withdrawing cash or assets from the company by the owner(s) for personal use.
Any type of drawings reduce the capital..
However, drawings are not considered a business expense ..