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Share Capital is the amount invested by the owners of business into the business.
Drawings is the amount withdrawn by the owners of business.

So it is not surprise to show the drawings from deduction from the share capital because net effect is the reduction of the share capital of the owners of the business.

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15y ago
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12y ago

Drawings Treated for Capital Account or Partners Account

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Q: How is drawings treated in the balance sheet?
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Related questions

Where to record drawings in balance sheet?

Drawings are recorded as a reduction of owners equity at equity side of balance sheet.


Where do you record drawings in the balance sheet?

asset


Do drawings go on a balance sheet?

yes


Where do put drawings in a balance sheet?

asset side


Is discount received balance sheet item or not?

It's only treated in income statement, not balance sheet.


Is the drawings account an expense account?

The Drawings account is not an expense account. It is a contra equity account. Therefore, it appears on the balance sheet.


Where is a drawings account recorded in double entry booking?

It would be a credit to bank and a debit to the capital account. Most of the time there will be a drawings account, but it will be by the capital in the balance sheet.


How will a post dated cheque you issued for your rent be treated in the balance sheet?

as liabilities


Is Loan on balance sheet or off balance sheet?

Loan is on balance sheet


Difference between on balance sheet financing and off balance sheet financing?

In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.


Is share asset or liability?

Share is treated as liability. It is not treated as asset. shares is called as share capital. capital is entered in the liabilities side of the balance sheet.


Drawings in balance sheet?

Drawing is contra account for owners withdrawals and shown as a deduction from owners equity of all owners withdrawals from business from time to time.