Is Drawings Account A Nominal Account Real Account Or A Personal Account
Drawings Account is not a Nominal Account as it is not an expense account. So revenues and expe nses accounts are related wit h nominal accounts. Drawings Account or wit h drawals account is also not a real account w hich is related with assets a nd liab ilities accou nts. Yes, drawi ngs account is a representative personal account which is a type of personal accounts as it is related wit h the ow ners of t he b usi ness w ho are the natural persons. For Example, Mr. A, Mr. B, Mr. C, etc., are the part ners of t he b usi ness or in case of sole proprietors hip, Mr. X is o nly t he ow ner of t he b usi ness w ho withdraws cash or goods from b usi ness for his ow n personal use. So, a drawing account (Mr. X’s Drawing Account) is created wit h the name of Mr. X. Similarly, for a partners hip, separate drawi ngs accounts are created w hich represe nts eac h of part ners’s drawings accounts e.g., Mr. A’s Wit h drawals Account, Mr. B’s Wit h drawals Account, Mr. C’s Wit h dra...