What is drawing against profit??

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1359 Points Posted on 05 December 2021
what is drawing against profit??
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On 05 December 2021 at 13:00 Report
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Quick Summary
Drawing against profit refers to a partner or sole trader withdrawing funds from their business for personal use. This is typically done from their share of the profits, which are transferred to their capital account. While common in partnerships and sole proprietorships, this concept does not apply to limited companies.

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Managing Partner at TAXounting
8742 Points Posted on 05 December 2021
As per me this is mainly applicable for partnership firm.

Where partner withdraw it capital from his share of profit
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On 05 December 2021 at 13:33
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Team Lead
7558 Points Posted on 05 December 2021
The profit of the partnership firm is transferred to capital account of the partner's. partner's can withdraw the money from their capital account for personal use.
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On 05 December 2021 at 17:35
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Company Secretary
7085 Points Posted on 11 December 2021
Drawing means withdrawal of money for personal use. It can be both in partnership as well as proprietorship firm but there is no concept of drawings in case of company
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On 11 December 2021 at 11:41

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