Owners drawings can be a confusing area in accounting. However we provide a full explanation with examples to help your understanding.
Tag: drawings
A regular question from new clients is do you pay tax on drawings? The simple answer, for most tax jurisdictions, is no. No income tax is due.
Drawings are the withdrawal of capital from a business by an owner. In this article, we will look at a simple example and the journal entry required to account for interest charged on drawings. The...
The ability for owners to draw on capital built up in a business is important for capital growth. We provide a full example with journal entries and explanations.