Difference between Drawings Against Capital and Drawings Against Profit.
Are you looking for the difference between drawings against capital and drawings against profit.
Here are the below differences between both.
| Basis | Drawings Against Capital | Drawings Against Profit |
| Where Debited | It is debited to capital account | It is debited to drawings account |
| Part | It is against Capital | It is against expected profit. |
| Effect | It reduces capital | It does not reduce capital |
| Interest on Drawings | It is not considered for calculating interest on drawings | It is considered for calculating interest on drawings |
| Interest on Capital | It is considered for calculating interest on capital | It is not considered for calculating interest on capital |
