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It is a common practice that proprietors of the business withdraw funds or goods from the business for their personal and domestic use. Sometimes they avail of the services of business assets themselves, such as use of business car for private purpose. Private assets may also be purchased and payment made through business. Certain equipments many also be purchased for proprietor’s son, daughter and wife etc. All these payments on account of the proprietor are termed as withdrawals and charged to proprietor account. We use the term drawings account for all the withdrawal made by the proprietor.


Drawings account will be debited in the following cases :


1.  Amount withdrawn by the proprietor for personal or private use.

2.   Goods taken by the proprietor from the business for domestic use.

3.  Payment for the rent of proprietor’s residence.

4.  Payment for the use of business car, vehicles and equipments for private purposes.

5.   Purchasing certain equipments such as calculator, pocket transistor etc. for      proprietor’s son, daughter and other relatives.

In the above cases ‘drawings account’ will be debited. It will be wrong and incorrect to debit other   accounts. If any other account, except drawings account has been debited it will be an error and will require to be rectified. It is common error to debit trade expenses account or sundry expenses account or miscellaneous expenses account instead of drawings A/c. The error needs rectification.


  Illustration 10. Rectify the following errors:


1. Amount of $. 2,000 withdrawn by the prooprietor for personal use was wrongly debited to trade expenses account.


2. Mohan & Sons, dealers in furniture, took a sofa set from the firm for their drawing room. The cost of the sofa was $. 4,000. The transaction was not recorded in the books.


3. Pocket transistor purchased for proprietor’s son was debited to sundry expenses account. The price of transistor was $. 400.


4. Business car is used by the proprietor for his personal trip to Nainital. Petrol charges amounting to $. 1,150 were debited to car expenses account.


5. Goods amounting to $. 1,100 were purchased from kiron Rai but it was posted to the debit side of  her account with $. 110.


6. Goods returned by Gavaskar were taken into stock. The return was recorded in the sales return book with $. 440 but it was written at the debit side of Gavaskar’s account.










Date                                                    Particulars      L.F

.                                                                                                Debit                          Credit

$.                                  $

I. Rent A/c                                                       Dr.                  1,800

To Suspense A/c                                                                                                          1,800

(Being rent paid was wrongly credited to rent account, now rectifted)


2. Suspense A/c                                               Dr.                  847

To Rent A/c                                                                                                                   847

(Being rent received amounting to Rs. 770 was debited to rent

account with $.77, now rectified)


3. Azhar’s A/c                                                  Dr.                   1,300

To Suspense A/c                                                                                                          1.300

(Being rectification of goods returned to Azhar but wrongly credited

to him)


4. Discount Allowed A/c                                Dr.                  70

Discount Received A/c                                   Dr.                  70

To Suspense A/c                                                                                                          140

(Being discount allowed was credited to discount received account,

now rectified)


5. Suspense A/c .                                             Dr.                   1.210

To Kiran Rai’s A/c                                                                                                       1,210

(Being rectification of purchases from Kiran Rai wrongly debited

to her account)


6. Suspense A/c                                               Dr.                     880

To Gavaskar A/c                                                                                                         880

(Being goods returned by Gavaskar were debited to him,

now rectified)


Notes. In all the above cases the amount of journal entry has been ascertained by adding the correct amount of the transaction with the amount of wrong posting. In case the wrong posting at the wrong side has been made with the same amount, the rectified journal entry will be made with the double amount.