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| Drawings Journal Entry |
When a business owner withdraws funds or assets from the business for personal use, it is called a drawings. then it is maintain the records as drawings.
Journal Entry for Drawings
Owner's Drawings Account Debit
Cash or Bank Account Credit
- The "Owner's Drawings" account is debited because of withdrawal of funds or assets by the owner in business
- The "Cash" or "Bank Account" is credited because to reflect the decrease in the company's cash or bank balance.
This journal entry reflects the withdrawal of by the owner, reducing the company's cash balance and reducing the owner's capital. Business owners need to keep track and maintain of their drawings separately from business expenses to maintain accurate financial records
