Why drawing is directly credited to capital account in closing accounts?

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1150401

2026-07-16 23:26

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Capital is item which is contributed by owner towards business and drawing is item which is received by owner from business or take out money from business so as when owner provide money to business increase capital the same way taking out money simply reduce that capital amount that';s why drawing directly credited to capital to show the net capital asset of owner in business.

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