wat are drawings? (1 Viewer)

[taco man]

Hey could some1 tell me wat drawings are i cant seem to rembr them from yr 11

thx

 

[taco man]

thanks

 

[goan_crazy]

Tacoman, I found this out from advice line 2day
in a balance sheet, you minus these from the owners capital
e.g. in if owners capital is $100 000 and drawings are $60000 then the remaning minus the drawings is $40000
u gets?

 

[taco man]

I get wat ur sayin but then i dont get it
so A=40,000 OE=100,000
L=A-OE=40,000-100,000

 

[goan_crazy]

I get wat ur sayin but then i dont get it
so A=40,000 OE=100,000
L=A-OE=40,000-100,000

No i think your thinking of the accounting eqn
A=L+OE?
its not that
its simply a thing on the balance sheet
they asked u to find solvency
but to work out owners capital, you had to minus the drawings
it could come up in the exam.
Now you know what to do

 

[taco man]

i getcha lol thanks

 

[exa_boi87]

I get wat ur sayin but then i dont get it
so A=40,000 OE=100,000
L=A-OE=40,000-100,000

Yeah, those figures are sort of impossible ... In Balance Sheets A = OE + L

 

[shinji]

quite possible; but highly improbable. ... though the business would be in a LOT of trouble! haha XD

 

[DylanFuller]

No, they're impossible. OE can't be $100000 if A is only $40000, since it's meant to be the addition of both L and OE that equals the same amount as A. I don't see how $100000 plus anything would be equal to $40000. Unless L can be negative ... which it can't.

Old topic, I know.