can u tell me if drawings are a credit or a debit
A credit if sold? A debit if bought?
Its they owner taken her wages
If you take something from your checking account, is it a debit or a credit? Do you have more or less than you did before taking it out?
Whether drawings are considered a credit or a debit depends on the context in which they are being used. In accounting, 'drawings' typically refers to the act of taking money out of a business for personal use by the owner. In this case, drawings are recorded as a debit to the owner's equity account and a credit to the owner's drawings account.
If you sell a drawing, it typically involves a transfer of ownership in exchange for money. In this case, the sale of a drawing would result in a credit to the cash or accounts receivable account (depending on the payment method) and a debit to the sales revenue account.
When you take something out of your checking account, it is considered a debit. By doing so, you are reducing the balance in your account, so you have less money than you did before taking it out. This is because debits are used to represent decreases in assets or increases in liabilities and expenses in accounting.
To summarize:
- Drawings (in the context of taking money out of a business by the owner) are recorded as a debit to the owner's equity and a credit to the drawings account.
- Selling a drawing would result in a credit to cash or accounts receivable and a debit to sales revenue.
- Taking money out of a checking account is considered a debit, reducing the account balance.