Is drawing account real or personal?

Is drawing account real or personal?

Solution. This statement is False. Drawings mean amount withdrawn by the owner from business and the owner’s account is a personal account. Therefore, we can say that the drawings account is a personal account.

What type of account is drawing account?

A drawing account is a contra account to the owner’s equity. The drawing account’s debit balance is contrary to the expected credit balance of an owner’s equity account because owner withdrawals represent a reduction of the owner’s equity in a business.

Is drawing real or nominal?

Drawings Account is not a Nominal Account as it is not an expense account. So revenues and expenses account are related with nominal accounts.

Is drawing account an asset?

The definition of the drawing account includes assets, and not just money/cash, because money or cash or funds is a type of asset. It is a current asset of the company and is one of the many assets that can be withdrawn from the business by the owner(s) for their personal use.