Drawing Account

Drawing Account
An accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships. Owner withdrawals from businesses that are taxed as separate entities must generally be accounted for as either compensation or dividends.

A drawing account is helpful to business owners in tracking their businesses separately from their personal finances. It is particularly relevant in partnerships, where partners may wish to monitor withdrawals to ensure that a partner is not taking too much money out of the business. A drawing account is closed to the owners' equity account each year, and is not recorded as a business expense.

Investment dictionary. . 2012.

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  • drawing account — ➔ account1 * * * drawing account UK US noun [C] US ► ACCOUNTING a company account that contains a record of the money that its owners take for themselves ► BANKING a bank account that employees use for expenses related to their jobs …   Financial and business terms

  • drawing account — n. an account of or for money paid for expenses, advances on salary, etc., as to a salesman …   English World dictionary

  • drawing account — noun 1. : current account 2. : an account showing usually periodic cash payments to an employee in advance of actual earnings or for expenses to be incurred; especially : one showing advances to a salesman against commissions on future sales or… …   Useful english dictionary

  • drawing account — The account of an employee, usually a salesman working on a commission or part commission basis, with the employer, upon which advances are made to the employee at intervals fixed by the contract of employment or upon request by the employee.… …   Ballentine's law dictionary

  • drawing account — draw′ing account n. 1) bus an account used esp. by a business partner for cash withdrawals 2) bus an account that is charged with advances of money against future earnings, esp. sales commissions • Etymology: 1825–35 …   From formal English to slang

  • drawing account — Com. 1. an account used by a partner or employee for cash withdrawals. 2. an account that is charged with advances of money for expenses, on salaries, against earnings, etc., esp. for sales representatives. [1825 35] * * * …   Universalium

  • drawing account — / drɔ:ɪŋ əˌkaυnt/ noun a current account, or any account from which the customer may take money when he or she wants …   Dictionary of banking and finance

  • drawing account — noun Date: 1885 an account showing payments made to an employee in advance of actual earnings or for traveling expenses …   New Collegiate Dictionary

  • drawing account — bank account which allows sums of money to be regularly withdrawn …   English contemporary dictionary

  • drawing account — /ˈdrɔɪŋ əkaʊnt/ (say droyng uhkownt) noun US Banking, etc. → cheque account …  

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