Question

drawings is to be ____to closing stock​

Answer 1

Explanation:

Since the drawing account is not an expense, it does not show up on the income statement of the business. Creating a schedule from the drawing account shows the details for and a summary of distributions made to each business partner.

Drawings from business accounts may involve the owner taking cash or goods out of the business – but it is not categorised as an ordinary business expense. It is also not treated as a liability, despite involving a withdrawal from the company account, because this is offset against the owner's liability