Drawings and loan


(Guest)

I have 2 very basic questions.

1. What is the difference between drawings and loan - say it is a firm? Is there a funda that beyond a limit the drawings becomes a loan?

2. What one can understand from the information "XYZ Loan A/c --------------100,000"? There is no information if this is Credit or Debit balance. Do we need to ask for the info dr. or cr. OR can we conclude that this is a credit balance?

Many thanks!