Drawings

If the owner takes cash or goods out of the business for personal use, it is known as drawings.  Since drawings will reduce the Capital, which was invested by he owner, the drawings account will be recorded as a debit entry.

Rules of Double Entry

Cash Drawings
  1. Drawing Account - Debit
  2. Cash Account - Credit

Stock Drawings
  1. Drawing Account - Debit
  2. Purchases Account - Credit