All Leaving Cert Accounting posts
  • avatar image

    Suspense Accounts Varsha

    When do you use drawing and when do you use capital account??????

    Please help..

    1. avatar image


      Drawings occurs when the owner takes something from the business (eg vehicles, equipment), Capital is when the owner introduces something into the business (eg money, vehicles, holiday tickets etc). In LC suspense, when an owner introduces something into the business but draws something at the same time, the drawed amount is offset vs the capital amount. (ie If the owner gives the business a car valued at $20,000 but takes a fridge valued at $10,000, enter 10,000 into the capital account (20,000-10,000) and then make other relevant entries.)

    2. avatar image


      Thank you soooo much!!!! That makes so much sense

    3. avatar image


      Share files from your computer