Drawings
Accounting glossary · Understand, connect, apply
Drawings are withdrawals of cash or other business resources by the owner of an unincorporated business for personal use. They reduce owner’s equity.
Example
A sole trader takes $300 from the business bank account for personal spending. Debit Drawings and credit Cash.
Remember the difference
Drawings are not an operating expense and do not reduce the business’s net income.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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