which accounting principle requires that personal expenses of proprietor or partners should be debited to drawing account?
Dear Student,
According to Business entity concept, owner and business are different identities. So, we can not record owner's personal expenses in business accounts, so, we treat these personal expenses as drawings.
Regards
According to Business entity concept, owner and business are different identities. So, we can not record owner's personal expenses in business accounts, so, we treat these personal expenses as drawings.
Regards