Drawings

Can someone explain something to a northern thicky please? Why do drawings go into the Balance sheet columns in the ETB when you have adjusted for them?

Comments

  • blobbyh
    blobbyh Registered Posts: 2,415
    Directors Loan Account

    Oops - meant for a PM!

    Anyway...

    ... apparently, the message header says it's 18.38 so why am I still at work? Oh yes, it's actually 13.45 on a wet and windy Monday afternoon. Don't suppose I'll ever get the hang of this AAT-time.
  • laurad
    laurad Registered Posts: 49 ? ? ?
    Can someone explain something to a northern thicky please? Why do drawings go into the Balance sheet columns in the ETB when you have adjusted for them?

    you only adjust for them in partners accounts dont you? and the "financed by" section on a partners balance sheet consists only of capital and current accounts (and the current account is where you adjusted for drawings in the ETB)

    for a sole trader B/S you would just include drawings in the financed by section at the bottem. you dont adjust the capital for drawings for a sole trader

    hope that helps
  • visha
    visha Registered Posts: 218 ? ? ?
    In accounts there 5 type of accounts categories

    1- Income - these end up in Profit and Loss a/c
    2- Expenses - These end up in Profit and loss a/c

    The difference between the two a/c is s either a profit or a loss that belongs to the proprietor.

    3- Asset - these end up in the balance sheet
    4- Liabilities - these end up in the balance sheet

    5- Proprietor’s account - capital account these also end up in the balance sheet

    You need to ask yourself a question. to which category does the drawings a/c belong to?

    It will be self evident!
  • A-Vic
    A-Vic Registered Posts: 6,970
    Also not forgetting the current account if a partnership
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