Meaning of drawing
What is the meaning of drawing in financial accounting?
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We employ drawing numerous times in financial accounting. Drawing here means any amount withdraws from business for personal utilization. Not only cash however when we withdraw any product from business or any asset of business for personal utilization which will be drawing. This surely decreases the capital of any business. Therefore business man should record drawing in his books and hence accountant can compute accurate gain or loss of business man.
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Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is
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