Is drawings a debit or credit?
Understand the Problem
The question is asking whether drawings affect accounts as a debit or a credit in accounting. Drawings typically refer to amounts withdrawn by the owner from the business for personal use, impacting equity accounts.
Answer
debit
The final answer is debit.
Answer for screen readers
The final answer is debit.
More Information
Drawings refer to the amount of money withdrawn by the owner from the business for personal use. The drawing account is debited to reflect this withdrawal, which reduces the owner's equity in the business.
Sources
- Drawing Account: What It Is and How It Works - Investopedia - investopedia.com
- Drawing Account - Overview, Usage and Features, Accounting Entry - corporatefinanceinstitute.com
- What Are Drawings in Accounting? - GoCardless - gocardless.com
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