what is difference between drawings and withdrawn capital?
Hello,
Withdrawal of Capital and drawing are two separate things.
The withdrawal of capital is shown in Partner's Capital Account in case fixed capital method. This means the Capital account of the partner will continue to show same balance every year until and unless some fresh capital has been introduced or something has been withdrawn out of capital.
On the other hand, drawings reflected in Partner's Current Account are the amount or goods withdrawn by the partner for personal use. This is reflected in Partner's Current Account.
Withdrawal of Capital and drawing are two separate things.
The withdrawal of capital is shown in Partner's Capital Account in case fixed capital method. This means the Capital account of the partner will continue to show same balance every year until and unless some fresh capital has been introduced or something has been withdrawn out of capital.
On the other hand, drawings reflected in Partner's Current Account are the amount or goods withdrawn by the partner for personal use. This is reflected in Partner's Current Account.