Similarities & Differences Between Drawings And Assets In Accounting
Drawings And Assets Drawi ngs is the withdrawal of Cash or Goods by the Proprietor from his business. In case of a company or corporation’s business, there is the withdrawal of Earnings in the form of Dividend which shows the distribution of profits to the shareholders / stockholders while Assets are the resources owned and controlled by the owners of the business from which the business may expect probable future economic benefits. Drawings is a Contra Capital Account as it is the reversal of capital account while assets are Permanent Accounts which may be used in the business for short-term or long-term basis depending upon the Types of Assets. Similarities B etween Drawings And Assets In Accounting Both are reported i n the financial statements. B oth have normal, usual, positive or favorable balance on debit side of the ledger and unusual, negative or unfavorable balance on credit side.