drawings is a personal account.
so u can,t show drawings in trading a/c.
but have a some condition that if propriter or partner
taken goods from firms than u it will show.
Drawings are reduced from the purchases or shown the credit
side of the trading account because some of the goods used
by the owner of the business for his personal so we have
reduce the drawings from purcheses to know actual profit of
the business
drawings is divided into 2 categories;1.Drawings of goods
for personal use,2.Drawings of cash for personal or office
use.In trading account drawings will reduce the amount of
goods bought for resale that is Purchases, so drawings
should be deducted from purchases to get the real goods
available for sale.
What is the difference between Depreciation charged in P&L a/c
and the Depreciation deducted from Assets' value in Balance
Sheet, in an accounting period?
Under which headings the following transaction appear in
bank reconciliation as on 30.06.03
particulars
Interest debited by bank
Chq issued to suppliers not appearing in bank statement
Chq deposited not appearing in bank statement
Income not accounted in books appearing in bank statement
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