Balance sheet

[simpleuser]

Hello, as you see I am kind of new here, so if I've posted this question in a wrong section. Please let me know.

My question is about the following balance sheet from my book (business accounting: an introduction to financial & management accounting by Jill Collis and Roger Hussey), see attachment.

Now my question is, let's say we don't do a drawing. How would this affect the balance sheet? As if we leave out the drawings, the assets - liabilities wouldn't be equal to the capital. Which entry will change and why?

Thanks for explaining!

 

[ArcSine]

If you didn't have the draws, then both Cash (and hence Net Assets) and Capital would increase by 250.

 

[simpleuser]

ah I see, thanks for explaining!