What is Drawing – Meaning and Examples



In accounting, Drawing means anything withdrawal by the owner from the business in cash or in-kind(any item). In other words, The owner or owners have all the rights on the business transactions but the drawing account is that account which is operated to record the total amount or value of the things (assets) withdrawal by owner or owners in the book of business. 


“The Drawing Account is maintained in the Sole proprietorship and in Partnership, not in the company books of accounts.” In the Partnership firm there will we open a different account for each partner. 

Is TDS is applicable on Drawing?: –

The answer to the above question is NO. There is no such provision to deducted TDS on the amount of Drawing by the Owner. Because this amount will be added in the personal income of the owner and he will pay Income tax on it. 

Journal Entry for the Drawing. 

The accounting transaction is recorded in the journal daybook as shown following: –

For Example: –


Mr A is withdrawal the following assets from the business

  • Cash withdrawal Rs 10,000/-,
  • Daughter College Fee paid of Rs 50,000/- by cheque,
  • Owner’s Income tax paid by the Business worth Rs 5,000/- by cheque.


Date Particulars  L.F.Debit Credit  
 Drawing a/cDr. 65,000 
 To Cash a/c   10,000
 To Bank   55,000
 (Being Withdrawal by the owner )    

Note: –

We assume that in the above example all the business transactions occurred on the same day. That’s why we post the combine journal entry rather than it will be posted differently as per date of the transaction.

Closing of The Drawing Account: – 

The drawing account is maintained to record all transactions which are related to the cash or kind withdrawal by the owner from the Business. This is not our expenses and not treated as assets account. This is a temporary account, So we have to close it at the end of each financial year by directly debited to the capital account. 

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You can also check out the Meaning of Capital. 


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