The total with which a trader starts the business is known as Capital. The proprietor may leave definite amounts from the business to meet personal expenditure or goods for personal use. It is called Drawings. A drawing account is a capital account.

#How to record drawings from capital?

The Account for capital and cash/bank are default account in ProfitBooks user does not have to create them again and can use the same.
For recording the drawings from the capital user have to pass journal entries. To pass journal entry follow the below-mentioned steps:

Step 1: Go to Accounting > Journal Entries, click on "Add New Record".
Step 2: Fill in the details like Date, Under project, if any.
Step 3: Under From Account select capital account and debit it with the amount and select cash/bank account and credit it with the same amount.
Step 4: Fill the description box for eg. "Drawings for owner" and
Step 5: Click on save and it's done.

Journal entry

You can also read about:

How to record repayment of Capital (Owner's Equity)?
How to record Introduction of Capital?
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