Accountancy, asked by dayanithi012, 6 months ago

why salary to proprietor is considered as drawings?​

Answers

Answered by BearKnight
1

Answer:

Obviously, the proprietor is free to draw money from the business at any point of time as per his/her wish, but this would not count as salary. A Sole Proprietorship is not a separate legal entity from the owner. Rather, the proprietor is required to file the business taxes on his/her own tax returns.

Similar questions