The withdrawal of business cash or other assets by the owner for the personal use of the owner. Withdrawals of cash by the owner are recorded with a debit to the owner’s drawing account and a credit to the cash account.
We use drawing many times in financial accounting. Drawing here means any amount withdraws from business for personal use. Not only cash but if we withdraw any product from business or any asset of business for personal use that will be drawing.
It surely reduces the capital of any business. So business man must record drawing in his books so that accountant can calculate correct profit or loss of business man.