Difference between Drawings Against Capital and Drawings Against Profit.

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Are you looking for the difference between drawings against capital and drawings against profit.

Here are the below differences between both.

BasisDrawings Against CapitalDrawings Against Profit
Where DebitedIt is debited to capital accountIt is debited to drawings account
PartIt is against CapitalIt is against expected profit.
EffectIt reduces capitalIt does not reduce capital
Interest on DrawingsIt is not considered for calculating interest on drawingsIt is considered for calculating interest on drawings
Interest on CapitalIt is considered for calculating interest on capitalIt is not considered for calculating interest on capital
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