Goods worth 25000 and cash 40000 were taken away by the proprietor for his personal use .what is the journal?

Question

Answer

Journal Entry for Proprietor Taking Goods and Cash for Personal Use

When a proprietor takes goods and cash from the business for personal use, it is considered a withdrawal. This transaction should be recorded in the accounting system to ensure accurate financial statements. The journal entry for this transaction would be as follows:

Journal Entry:

Debit: Drawings account - $65,000 (25,000 for goods and 40,000 for cash)

Credit: Inventory account - $25,000

Credit: Cash account - $40,000

Explanation:

The Drawings account is a contra equity account that reduces the owner's equity by the amount of withdrawals made by the proprietor.

The Inventory account is credited because goods were taken out of the business for personal use.

The Cash account is also credited because cash was taken out of the business for personal use.

This journal entry will reduce the proprietor's equity in the business by the amount of the withdrawal. It also reduces the inventory and cash balances of the business. It is important to keep track of withdrawals made by the proprietor to ensure that the financial statements accurately reflect the financial position of the business.

Answer

Drawing A/c Dr 65000 To cash A/c 40000 To purchases/stock A/c 25000

Answer

Drawings A/c. Dr. 65000 To Stock A/c. 25000 To Cash A/c. 40000

Answer

Drawing account debit to purchase account to cash account

Answer

Drawings A/c Dr 65000 To purchase A/c 25000 To Cash A/c 40000 (Being proprietor taken For personal use)

Answer

Drawings account dr.to cashto stock

Answer

Cash A/c Dr. To stock A/c.

Answer

Goog worth 20000 and cash 5000 were given away sa charity

Answer

15000

Similar Commerce Doubts

Goods worth Rs 25000 and cash Rs 40000 were taken away by the proprietor for his personal use ? What is the journal entry for this ?

Goods worth 20000 and cash 5000 were given away as charity .what is the journal?

Pass journal for the following transaction 1 purchase furniture for rupees 25000 and paid 200 for its carriage 2 goods worth 1500 and cash 500 were as charity 3 where is due to labour 5000 4 received cash 2,000 from Tushar for bad Dept written off last year 4?

Acquired running business of MAX for cash 50000 by taking over the following assets and liabilities as stated: Stock of goods:15000, Cash:25000, Machinery:8000, Land:10000, Debtors:7000 and creditors:15000. Journal entry for the following will be:?

Top Courses for CommerceView all

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

Economics for CBSE Class 12 Board Examinations

Top Courses for Commerce

Top Courses for Commerce

Suggested Free Tests

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company