Question

Is drawings- liability,capital ,assets ,expenses or gains?

Answer 1

Drawings meaning

Drawings means withdrawals of cash from firm or business by the partner .

Drawings is withdrawn from company's cash

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Treatment of drawings

Drawings will be deducted from capital while calculating closing capital

Answer 2

Hey Mate!

Drawing is the amount withdrawn or goods taken by the proprietor for personal use from business.

So it will be subtracted from capital in liability side of balance sheet.

Hope it helps you...