Question
7. What are drawings? How are drawings different from salary? please rephrase in urown words. the ans is below Drawings are the amounts of withdrawal
7. What are drawings? How are drawings different from salary?
please rephrase in urown words. the ans is below
"Drawings are the amounts of withdrawal made by partner from the partnership firm. There is a drawing account in each partnership firm and is closed at the end of each year. The drawing is either in the form of cash or any asset. Salaries are payments for services provided, which are a fixed and payed regularly for the service. A drawing on the other hand is not a payment for a service provided. A partner would have to repay the amount of drawings while repayment of salary never happens. "
"Drawings are the right of the partner to remove money from the relationship over the year and do not include services including a paycheck. These transactions are considered drawings and are registered in a drawing system that is held by each partner and transferred to the capital account of the partner at the end of the year."
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started