DRAWINGS CLASS11 ACCOUNTS. WHAT ARE DRAWINGS. BASIC ACCOUNTNG TERMS.

DRAWINGS CLASS11 ACCOUNTS. WHAT ARE DRAWINGS? BASIC ACCOUNTING TERMS. DRAWINGS MEANING AND JOURNAL ENTRIES.

Transcript

00:00Hello guys, this is Sonia Sethia your accounts and equity tutor. So we were doing accounting terms for class 11th accountancy students.

00:07Third number is drawing. Goods or cash withdrawn from the business for personal use is known as drawing.

00:14Suppose this is Mintu, she has a total of 10 lakhs of capital. Out of that, if she takes some goods or laptops for her personal use at home,

00:24then those are drawings of goods. If she withdraws money from the capital, that is drawing of cash.

00:30What does drawing do? Drawing decreases the capital and while making a balance sheet, it is deducted from the capital.

00:39What will be the general entries? Drawings, Account, Debit to Purchases.

00:43If he is withdrawing goods, all the goods he is taking, suppose 50,000.

00:50And if he withdraws cash, then what will it be? Drawings, Account, Debit to Cash, 1 lakh and 1 lakh. Thank you.