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What will be journal entry when cash is withdrawn from bank for personal use ?
- a)Drawings A/C debit, Bank A/C credit
- b)Cash A/C debit, Bank A/C credit
- c)Bank A/C debit. Drawings A/C credit
- d)Bank A/C debit, Capital A/C credit
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What will be journal entry when cash is withdrawn from bank for person...
Journal entry for cash withdrawn for personal use is
Drawings a/c dr
To Bank a/c
The above entire depends upon two principals of accounting i.e
Personal account:- Debit the receiver, credit the giver
Real account :- Debit what comes in, credit what goes out.
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What will be journal entry when cash is withdrawn from bank for person...
Journal Entry for Cash Withdrawn from Bank for Personal Use
The correct journal entry for cash withdrawn from bank for personal use is:
Drawings A/C debit
Bank A/C credit
Explanation:
When the owner withdraws cash from the business bank account for personal use, it is considered as a withdrawal or reduction of the owner's equity in the business. Therefore, the journal entry to record such a transaction is:
1. Debit the Drawings Account
Drawings Account is a temporary account which is used to record the withdrawal of cash or assets by the owner for personal use. By debiting the Drawings Account, we reduce the owner's equity in the business.
2. Credit the Bank Account
Bank Account is a real account which represents the amount of cash balance available in the bank. By crediting the Bank Account, we reduce the cash balance available in the bank.
Hence, the journal entry for cash withdrawn from bank for personal use is Drawings A/C debit, Bank A/C credit.
The correct journal entry for cash withdrawn from bank for personal use is:
Drawings A/C debit
Bank A/C credit
Explanation:
When the owner withdraws cash from the business bank account for personal use, it is considered as a withdrawal or reduction of the owner's equity in the business. Therefore, the journal entry to record such a transaction is:
1. Debit the Drawings Account
Drawings Account is a temporary account which is used to record the withdrawal of cash or assets by the owner for personal use. By debiting the Drawings Account, we reduce the owner's equity in the business.
2. Credit the Bank Account
Bank Account is a real account which represents the amount of cash balance available in the bank. By crediting the Bank Account, we reduce the cash balance available in the bank.
Hence, the journal entry for cash withdrawn from bank for personal use is Drawings A/C debit, Bank A/C credit.
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What will be journal entry when cash is withdrawn from bank for personal use ?a)Drawings A/C debit, Bank A/C creditb)Cash A/C debit, Bank A/C creditc)Bank A/C debit. Drawings A/C creditd)Bank A/C debit, Capital A/C creditCorrect answer is option 'A'. Can you explain this answer?
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