drawing account
C1Formal, Technical (Business/Accounting)
Definition
Meaning
A financial account, typically for a business partner or sole proprietor, from which they can withdraw money for personal use against their anticipated share of profits or capital.
In accounting, a temporary account that records withdrawals of assets (usually cash) by an owner from a business for personal use. It is closed to the owner's capital account at the end of the accounting period.
Linguistics
Semantic Notes
The term is a compound noun where 'drawing' refers to the act of withdrawing funds. It is specific to accounting and business ownership structures (partnerships, sole proprietorships). Not used for corporate shareholders (who receive dividends).
Dialectal Variation
British vs American Usage
Differences
Concept and term are identical in both varieties. Spelling follows national conventions (e.g., 'capitalise' vs. 'capitalize' in surrounding text).
Connotations
Neutral technical term in both regions.
Frequency
Equally common in UK and US professional accounting contexts.
Vocabulary
Collocations
Grammar
Valency Patterns
The partner [verb: has/uses/maintains] a drawing account.Funds were [verb: withdrawn/taken] from the drawing account.The drawing account was [verb: debited/closed/balanced].Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “On the drawing account (informal business use: relying on anticipated profits for current spending)”
Usage
Context Usage
Business
Primary context. 'The sole proprietor's drawing account shows £5,000 taken for personal expenses this quarter.'
Academic
Used in accounting, finance, and business studies textbooks and lectures.
Everyday
Virtually never used in everyday conversation outside of business owners discussing their finances.
Technical
Precise accounting term with specific rules for debits, credits, and closing entries.
Examples
By Part of Speech
verb
British English
- The partner will draw against the account quarterly.
- She has drawn £2,000 from her drawing account this month.
American English
- The owner draws on the account for personal expenses.
- He drew too much from his drawing account, leaving the business short.
adjective
British English
- The drawing account balance is reviewed monthly.
- We need to update the drawing account records.
American English
- The drawing-account activity was high this quarter.
- Make a drawing-account entry for the withdrawal.
Examples
By CEFR Level
- The business owner has a special account for taking money for herself.
- As a partner, you can take money from the drawing account, but it reduces your capital in the business.
- At year-end, the accountant closed the £15,000 debit balance in the partner's drawing account to her capital account, reflecting her total annual withdrawals.
Learning
Memory Aids
Mnemonic
Think of an artist's drawing pad. Here, the 'drawing' is of money, not pictures. The 'account' is the record of all these 'drawings' (withdrawals) the owner makes.
Conceptual Metaphor
BUSINESS IS A WELL (The drawing account is the bucket used to draw water/wealth out for personal use.)
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid direct translation as 'рисующий счёт'. The correct conceptual equivalent is 'текущий счёт предпринимателя' or 'счёт для личных изъятий'.
- Do not confuse with 'расчётный счёт' (current/business bank account). A drawing account is a ledger account, not necessarily a bank account.
Common Mistakes
- Using it to refer to a bank account for everyday spending (e.g., a personal checking account).
- Confusing it with a 'drawing' in the art sense.
- Applying it to shareholders of a corporation (they receive dividends, not drawings).
Practice
Quiz
What is the primary purpose of a drawing account?
FAQ
Frequently Asked Questions
No, it is typically a ledger account in the company's accounting books. The actual cash may come from the business bank account, but the drawing account itself is a record of the withdrawals.
Sole proprietors and partners in a partnership. Shareholders in a corporation do not have drawing accounts; they receive dividends.
A salary is a formal, regular employee compensation subject to payroll taxes. A drawing is an informal withdrawal of the owner's equity (their share of profits/capital) and is not a business expense.
At the end of the accounting period (e.g., year), the total debit balance of the drawing account is closed by transferring it to the owner's capital account, thereby reducing their equity in the business.