Funds or goods taken out of a business by the owners for their private use. The drawings are always a reduction in capital and never an expense of a business.

1. Drawings
MUDASSIR RAZA
2020

2. What is meant by the
term drawing?
Funds or goods taken out of a business by the owners for their private use.
The drawings are always a reduction in capital and never an expense of a business.

3. Example:
On 25 August, the owner takes £ 50 cash out of the business for his own use.

5. Example:
On 28 August, the owner takes £ 400 of goods out of the business for his own use.

7. Thank you Good luck!