According to the dual aspect principle, when an owner invests capital, the business receives an asset (Cash/Bank) which is debited, and the owner's equity increases, which is recorded by crediting the Capital account.

When an owner withdraws cash or assets from the business for personal use, it is classified as 'drawings'. Since drawings represent a reduction in the owner's equity or investment in the business, the total capital of the company decreases accordingly.

Under the double-entry system, capital represents the owner's equity in the business. According to the fundamental accounting equation (Assets = Liabilities + Equity), equity accounts, including capital, carry a normal credit balance. This means that increases in capital are recorded as credits, while decreases are recorded as debits. Therefore, the expected normal balance for a capital account is a credit balance.

When cash is paid out for personal use, the cash balance decreases. Therefore, the Cash Account must be credited. The debit side of this transaction would be the Drawings Account, representing the proprietor's withdrawal.

Capital represents the owner's equity or the financial interest the proprietor has in the business. It is the initial investment of cash, goods, or assets provided by the owner to commence operations. According to the business entity concept, this is treated as a liability of the business toward the owner.

According to the rules of double-entry bookkeeping, capital is a credit-balance account. Therefore, a credit entry increases the balance, while a debit entry decreases it. Fresh capital investments and net income (which adds to retained earnings) both increase the capital account balance. Stating that a debit increases the capital balance is fundamentally incorrect.

When an owner withdraws cash for personal use, it is classified as 'Drawings'. According to the rules of accounting, drawings represent a reduction in the owner's equity. Therefore, the Drawings account is debited to reflect this decrease, while the Cash account is credited to reflect the reduction in business assets.

Profit represents an increase in the net worth of the business. Under the accounting equation, profit increases the owner's equity (capital) because it represents the residual interest of the owners after all liabilities have been satisfied.

Drawings represent the withdrawal of cash or other assets from a business by the owner for personal, non-business purposes. This transaction reduces the owner's equity in the business. It is important to distinguish drawings from business expenses, as drawings are a distribution of capital rather than a cost incurred to generate revenue. Proper accounting for drawings is necessary to maintain an accurate record of the owner's capital account.

Capital represents the owner's claim on the business assets. When an owner withdraws funds for personal use, it is recorded as drawings. Drawings directly reduce the owner's equity in the business, thereby causing a decrease in the total capital balance.