If you're talking about a sole trader, the drawings will just accumulate from year to year until they cease trading although these days it's kind of irrelevant as most sole traders don't use Balance Sheets and any net profit (regardless of drawings) is taxable.
For a Ltd company, the drawings account is called dividends and again is cumulative over the lifetime of the business but the difference is dividends can only be taking IF the company has a net profit and this is ALWAYS after corporation tax.
The way the balance sheet has been prepared, it appears that the proprietors original capital is being kept seperate, with the balance on the profit and loss account being bought forward each year. I would go with your second option and Dr P&L and CR Drawing, so you end up with a P&L balance of £12000.
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