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O-Level Drawings
What the O-Level syllabus expects for Drawings, and how to practise it.
What the syllabus expects
- Explain how drawings are accounted for using the relevant accounting theories
Scope: Relevant theory: accounting entity - Define drawings
- Write the journal entries for drawings and for moving drawings into the capital account
Scope: Drawings may be in cash or in kind - Draw up the drawings ledger account
- Read the drawings ledger account
- Work out how drawings reduce the sole proprietor's equity
- Produce a Statement of Financial Position extract presenting capital net of drawings on one line
More O-Level Principles of Accounts topics
Roles of accounting and of accountants · Stakeholders and what they need in order to decide · Judging profitability · Judging liquidity · Judging efficiency of inventory and trade receivables management · Kinds of business · all of O-Level Principles of Accounts