what is the exact explantion in drawing (accounting)?

Answer 1

The concept of drawings applies to a sole-proprietorship or a partnership. When an owner (i.e. a sole-proprietor or a partner) takes money, say $100, out of the business, we say he has made drawings of $100. Drawings will reduce the owner's equity in the business. When he puts back the drawings, the owner's equity will increase accordingly.

When he takes the money out, the entry would be:
Dr Owner's equity $100
Cr Cash $100

In a corporation, directors are not allowed to just take money out of the company like this cos the company doesn't belong to them. If a director takes money out, it is called a director's loan and it must be sanctioned at board level.