Owner’s Drawings: debit or credit?
Owner’s Drawings increases on the debit side and decreases on the credit side: its normal balance is a debit.
A contra-equity account reduces equity, such as the owner’s drawings or own shares bought back. It increases with a debit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Owner’s Drawings |
| Spain (PGC 2007) | 550 Titular de la explotación |
| France (PCG 2025) | 108 Compte de l’exploitant |
| Germany (generic accounts) | Privatentnahmen |
Practice entries that use this account
- Owner withdraws cash for personal use
- Owner takes goods from stock for personal use
- Owner pays a business expense personally
- Owner contributes a private machine to the business during the year
- Transferring a sole trader’s profit to capital
- Transferring a sole trader’s loss to capital
- Closing Owner’s Drawings to Owner’s Capital