The cash account is listed in the assets section of the balance sheet. Credit or decrease the cash account, and debit or increase the drawing account. The withdrawal is not an expense for the business, but rather a reduction of equity. In this situation, the funds are intended for personal use. There may be one more reason: In accordance to banks, they apply the credit to increment /increase(here in your bank account) and debit is known as decrement (suppose you have paid in by your debit card).ДЄ withdrawal can also refer to the draw down of an owner's account in a sole proprietorship or partnership. The debit represents (from the bank's point of view) how you (creditor) are owed less money by the bank.Д«eside above, why salary is credited not debited? If u receive your salary, it's an income and so it's said salary is being credited(into your bank account).

And when you withdraw from your account it is a debit on the bank statement. HereвЂ™s the effect of each entry on various accounts: Debit: increases asset and expense accounts decreases liability, revenue, and equity accounts. So when you have a positive balance of money in your account it will be a credit balance. Depending on the account, a debit or credit will result in an increase or a decrease. Hereof, is a bank withdrawal a debit or credit? Because a normal equity account has a credit balance, the withdrawal account has a debit balance. This means that it is reported in the equity section of the balance sheet, but its normal balance is the opposite of a regular equity account. 'Owner Withdrawals,' or 'Owner Draws,' is a contra-equity account.

Debit credit banking