What is the difference between Account and Ledger?
If we sum up the whole story in one line then it will be like this; Account is a place where transactions are recorded and Ledger is a place where accounts are maintained. Basically when the transaction occurs, we identify the nature of the transaction and then it is recorded in the proper account. Different […]
Why capital account is not debited to record drawings?
When owner of the business withdraw funds or goods from the business, we do not debit capital account instead we open record these withdrawals in another account which is usually named as Drawings account. So, we record such transactions without disturbing capital account in drawings account. Drawings account is also a capital account as this […]