I need to do an up to date profit & loss statement, one of the year end notes is:?

No entry was made in the books to record the withdrawal of goods to the value of $2200 for personal use... Do I debit closing stock %26amp; credit drawings?|||No. The other way around.





Credit closing stock $2,200


Debit an operating expense $2,200 - or accrued receivables if the person drawing down the stocks is going to owe the company.





Remember debiting an asset means MORE of the asset, not less. "Drawings" sounds like a made up liability or expense. It's an expense if the person doesn't owe it back. It's a accrued receivable if they owe it back (and it's accrued receivable instead of accounts payable because it isn't invoiced).