Difference Between Drawings And Dividends

The term “Drawings” is used in Sole Proprietorship or Partnership while “Dividends” is used in case of company or corporation but both have used for the same
purposes i.e., these are used by the sole owners, partners or owners for their personal use.
Drawings are related to personal activities of the business's owners separate from their business as it is withdrawn from Capital invested by the sole owners in the business while dividends is the portion of Profits and it is deducted from equity as a contra equity account so it is concerned with the business affairs.
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