Dictionary of Accounting Terms: drawing account
drawing account
provision allowing a personal withdrawal of cash or other assets from a proprietorship by the owner. It is in effect a disinvestment in the firm and reduces owner's equity. The entry is to debit the owner's capital and credit cash. The drawing account of a proprietor or partner is equivalent to the dividend account used by a corporation.
Dictionary of Business Terms: drawing account
drawing account
an account used by a proprietorship or partnership to track withdrawals. It is closed at year-end and the balance transferred to the owner's equity account or profit and loss account.
