Capital is the amount invested by the owner in the business, which increases the business's liability toward the owner and helps build the business, while drawing is the amount withdrawn by the owner from the business for personal use, which decreases the business's liability toward the owner; both are opposite in nature.
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Difference Between Capital and DrawingHinzugefügt:
Capital [cheering] is what you put in.
And drawing is what you take out. One builds the business, [music] the other is for personal use.
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