In business withdraws of Cash or from Bank for personal use of the business owner is considered as Drawings and worth of such transaction should be debited to the Capital Account. In general practice we use the Drawings Account Ledger for such transactions and in Tally.ERP 9 Accounting Software we can create Ledger for Drawings Account.
|Drawing Account Ledger|
In Tally.ERP 9 we can create an Account Ledger for Drawings and there is a specific Account Ledger Group available. At the time of Balance Sheet preparation the Drawings will be directly deducted from the Capital Account in the Liabilities side.
In order to create Drawings Account Ledger, go to the Ledger Creation screen. In the Ledger Creation screen
- Enter Drawings Account in the Name field.
- In the Under field select Capital Account from the List of Groups
And accept the screen to create the Drawings Ledger and this is how to create Drawing Account ledger in Tally.ERP 9.