Come back to another clip
We have learned how to invest in a business by the owner
How the capital is invested
If the money invested by the owner is withdrawn by the owner
Drawing is done
The money brought from home is withdrawn by the owner
We call it drawing
We will learn how to enter that
You may think that the money invested in the business is
being withdrawn
Normally it won't happen
First you invest, then you buy assets, then you do
business, then you sell
After a few years, the business stops
Drawing happens after a few years
But if we talk about learning
As soon as we finish the capital entry
If we learn drawing at that time, it is the best
Because there is a figure of 36 in capital and drawing
This is not a good thing, it is not a bad thing
The meaning of the figure of 36 is
As soon as the capital entry is done, its reverse entry
will be of your drawings
The entry by the owner to invest in the business
Bank account debit to owner capital account
The same entry will be reversed
In the case of drawing
When the owner withdraws money from the business
Owner's capital account debit to bank account
If he withdrew money from the bank account of the business
and took it back to his house
Owner's capital account debit to bank account
But friends
Come with me for once
And pass this entry
Owner's capital account debit to bank account
Watch carefully what I am teaching
This clip is going to be very important
As I told you
Bank account debit to owner capital
Entry to invest money
Entry to withdraw money
Owner's capital account debit to bank
But there is a small change in this entry
Why does it come?
We will teach that then
First pass this entry
Owner's capital account debit to bank
Now see
Come to telly
Come to your balance sheet
And see how much capital is visible by pressing Alt F1
Rs. 10,40,000
How much money is there in the bank?
Rs. 10,00,000
I am saying that the owner is withdrawing Rs.
1,00,000 from it
How much money is he withdrawing?
Rs. 1,00,000
The owner is withdrawing Rs.
Okay Come Gateway of Telly
Where will you go?
V for Voucher
Just think about the entry of capital investment
You don't have to do anything else here
In which voucher did we do the entry of capital investment?
Received voucher F6
So where do we have to do this entry?
Payment voucher F5
Press F5
Payment voucher will open
This is a payment from the business angle
Business is giving Rs.
1,00,000 from its account to the owner
This is a payment from the point of view of business
We have to debit the owner's capital account this time
So take Mr.
X's capital account and debit it
How much is the amount?
Rs. 1,00,000 1, 2, 3, 4, 5
Press Enter
Press Enter again
We have to credit the X's bank account
Means we have done the opposite
We have credited the debit
And we have debited the credit
From Rs.
Press Enter
Save this screen as Ctrl A
Write in the narration
Being Capital Withdrawn
Being Capital Withdrawn by Owner from the Business
From where did the owner withdraw capital?
From the business
Being Capital Withdrawn by Owner from the Business
Press Enter
Press Y to save it
You can also save it by pressing Ctrl A
There is no problem in that
Now we will come out once
Your heart is still accepting everything
Entry to deposit money
Bank Debit
Owner Capital Credit
Entry to withdraw money
Owner Capital Debit
Bank Credit
This should be
Now see
We did it
I completely agreed to you
Accepted from the heart
And also entered
Now press B for Balance Sheet once
And press F1 with Alt
You see here in Mr.
X's capital
You can see directly
Rs. 9,40,000
Means the fall of Rs.
Did you find out anywhere
Where did that Rs.
1,00,000 go?
It is not visible outside in the balance sheet
You are not able to see on the balance sheet
Present How much money did the owner withdraw from his
house?
While this is a very important information of a business
Take out this thing
And tell your investors
Reader of Financial Statements
How much money did the owner withdraw?
How much drawing did he do?
He took it to his house
This is very important information
And it is not visible outside in the balance sheet
That thing should not be visible in the balance sheet
That's why my dear friends
We do this entry in a slightly different way
This will have an effect
Your capital will decrease by Rs.
But here Rs.
1,00,000 will be shown
Where did that Rs.
1,00,000 go?
I will show you how
Press SK
Press SK and come to Gateway of Delhi
And D for Display
D for Debug
Press DD twice
DD And this entry which you have done now
Press Enter and open it
Press Enter
Once you come here
Where you have debited Mr.
X's capital account
Here we will debit another account
We will debit another account
Press C with Alt
Here another account will be debited
Whose name is
DRAWINGS ACCOUNT
Its name is Drawings Account
Its heading will remain the same
It will come under Capital Account only
Because it has to be put on Capital Account only
It will come under Capital Account only
Because it has to be put on Capital Account only
Ultimately As soon as we write Drawings Account under
Capital
And debit it
Our capital will decrease
Press A with CTRL
And save this screen as well
A with CTRL
Save this screen as well
And save this screen as well
So our entry has changed a little
Now escape and come out
Come to Gateway of Delhi my dear friends
And now press B for Balance Sheet
And F1 with Alt
Is it showing here
How much was Mr.
X's capital
Rs. 10,40,000
How much did the owner take from it
Rs. 1,00,000
Then finally Rs.
9,40,000 is left
The effect is the same
My capital has reduced by how much
Rs. 1,00,000
My capital has reduced by Rs.
But this time it is more presentable
As soon as you read
Drawings also shows
How much money the owner has withdrawn from the business
For any person
Who wants to judge a business
It is important to know
How much money the owner is withdrawing
From the balance sheet
This tells us
The intention of the owner
To continue the business in the near future
If he is withdrawing more money
That's why we do this
Ok So the work will be the same
But the style will be 50-50
What does Salman Khan say in Wanted
Whatever I do, I will do it with fun 50-50 in my style
The effect will be the same
Your capital will reduce
Ok If we have done the drawing in cash
Now the money we have
How much is in the cash account
Rs. 20,000
Let's do a drawing of Rs.
Ok sir
V for voucher
Payment voucher will remain
What should I debit? Mr.
X's capital account or drawing account?
Drawing account
Rs. 5,000
We are not doing it from the bank
We are doing it from cash
Write in the narration
Being cash withdrawn
By owner
For personal use
Being cash withdrawn
By owner
For personal use
Means Credit will be cash instead of bank
If the owner
Has not transferred the money from the bank to the house
He has taken out the cash from the business
So this will be the entry
Press A with CTRL
Press ESCAPE twice to reach the Gateway of Tally
Press B for balance sheet
Press F1 with ALT
And see your drawing
Increased to Rs.
If you press ENTER, you will know
You have withdrawn Rs.
1,00,000 from the bank
And you have drawn Rs.
5,000 in cash
You have withdrawn Rs.
5,000 in cash
And your cash balance
In current assets
Which was Rs.
20,000 earlier
Has increased to Rs.
Is the tally going well?
Software can make mistakes
But not the machine
You can make mistakes
Let's read out the notes
Let's read out the drawing notes
Capital withdrawn by the owner from the business is known
as Drawings
However, if he is taking any other money for his domestic
purpose
Even if not from the capital
He is taking it from the profit
That is also called drawing
Drawings is the value withdrawn by the owner for his or her
personal use
Drawings is the value withdrawn by the owner for his or her
personal use
What are the steps?
Go to the voucher
Select F5
Press ALT plus C
Drawings account
Under the head
Capital account
Credit to the bank
If you have withdrawn money from the bank
Drawings in cash
Press CTRL plus
Save If you are a student
What will you learn?
We have seen Capital in three parts
Saving in the bank
Saving in the cash
And goods
Drawings will be of three types
Saving from the bank
Saving from the cash
And, now think
If it was in the business
For example
Suppose If it was in the business It's for laptops. Whose
business is it for?
Laptops.
But we have entered the T-shirt business.
Let's take the T-shirt business.
Now, the T-shirts in the business, to sell in the shop, a
T-shirt owner likes one of those.
And he says,
I will not sell this to anyone.
I like this.
I will wear this.
I will keep it for my personal use.
Take it for yourself, or take it for a friend, for a
relative, or for your child.
Means, for personal use, if you withdraw money from there,
then this will happen.
What will this be called?
Goods withdrawn for personal use.
Drawings in kind will be made.
Goods withdrawn for personal use.
The goods kept in the business, the goods kept to sell, the
owner has kept them for his personal use.
Tell me, how did this entry happen?
Remember that.
When capital in kind was invested, how did this entry
happen?
Just remember that once.
Try to remember a little.
Sir, we came for a voucher.
And we took a voucher of F7 journal.
And we had debited the purchase.
And we had credited the owner's capital account.
So here we will debit the owner's capital account.
Or we will debit the drawings.
We will debit the drawings account.
Here we will debit the drawings account.
Okay.
For example, he liked one T-shirt.
One of our T-shirts was 5000.
Take 5000 rupees.
What will be the credit?
Purchase account.
Whenever goods enter the business, purchase debit.
Whenever goods leave the business, purchase credit.
Remember class 11, D.K. Goel.
The goods had drawing entry.
Drawing account debit to purchase.
The goods were distributed in free samples.
Advertisement to purchase.
The goods were charitied.
Charity to purchase.
The goods caught fire.
Lost by fire to purchase.
Whenever the goods kept with you become less, the purchase
account is credited.
Whatever the reason, be it drawings, fire, loss by theft,
or advertisement, donation in charity, whatever the reason,
the purchase account will be credited.
Now he is asking the name of the item.
We have only one T-shirt.
Quantity is one.
Rate is 5000.
Press A with CTRL and write the narration.
Being one T-shirt, taken from business by owner for his
personal use.
Press A with CTRL and save it.
Press ESC twice.
Press B for balance sheet.
Press F1 with ALT.
Your drawings increased.
Increased by 5000.
Earlier it was 1,05,000.
Now it is 1,10,000.
Press ENTER.
Press ENTER and see.
It is known that the owner withdrew 1,00,000 from the bank
and sent it to his home.
He took the 5000 business cash to his home and withdrew the
5000 goods and started using it for his personal use.
Drawings increased by 1,10,000.
Let's read out the notes.
Details means quantity.
How much he withdrew the goods, how much he withdrew the
goods.
How many pieces of T-shirt he withdrew.
Press CTRL plus A.
This way you will get it.
Save.
These were the entries of the drawings.
In the way
I can make it revised.
How do we make capital?
In three parts.
Capital can be invested in the bank.
Cash and Incline.
In the same way,
Drawings can be done from the bank,
Cash Incline can be done in the form of goods.
Okay.
Capital investment entry is in Received Voucher
Bank or Cash account is debited and owner's capital account
is created
Drawings entry is in Payment Voucher
Owner's capital account is debited but in the name of
Drawings whose heading is the same as Capital Account and
Credit is Bank Account or Cash Account
When Capital is invested as Goods, we enter in General
Voucher
Debit Purchase Account, add Goods details and create
Owner's Capital Account
When Capital is invested as Goods, we enter in General
Voucher
Debit Purchase Account, add Goods details and create
Owner's Capital Account
Capital and Drawings are opposite