It will also reduce the owner's equity in the business. If an owner withdraws $1,000 for personal use, you need to create a debit entry for $1,000 in the drawings account for the owner, such as "John Smith, Drawings" or "John Smith, Drawing Cash." A corresponding credit entry is made in the "Cash" account.

FOR EXAMPLE-

Owner's drawings a/c Dr. 1,000

to cash account 1,000