Drawings / Withdrawals Are Decreased And Increased By What

Withdrawals (Cash Or Goods Withdrawn By Sole Proprietor Or Sole Owner From Business For His Own Personal Use) Are Increased By What?

Withdrawals are increased by a debit while decreased by a credit as the usual or normal balance of owner’s withdrawals account is on left side or debit side of t account. So, withdrawals are increased on debit side of t-account.

Withdrawals Are Decreased By What?

Withdrawals or Drawings are decreased on the right side or credit side of T-Account as it is a side opposite to normal side where its balance decreases.

Withdrawals affect the owners' equity negatively as it is deducted from it on statement of owners' equity due to the separate legal entity concept. It means for accounting purposes, the business activities are separated from personal activities of the business' owners.