gaddala ramesh (163 Points)
08 April 2023
prasad Nilugal
( GST Practitioner & Accounts )
(14183 Points)
Replied 08 April 2023
Hoping that owner is Sole proprietor
Drawing s A/c Dr
To Current Bank A/c Cr
( withdraw for personal use from business)
Note - Current bank account is only for business .
Capital A/c Dr
To Drawing A/c Cr
( Drawing transfer to Capital account)
prasad Nilugal
( GST Practitioner & Accounts )
(14183 Points)
Replied 08 April 2023
If you are Partnership firm then , Drawings will be transfer to Partners Capital A/c or Partners current A/c as the Case may be .
Yasaswi Gomes new
(Finance )
(4484 Points)
Replied 12 April 2023
He can directly
It's a good question because we can debit current bank account but cannot cr. Personal bank account . But anyways we have to do it and we record it as
Dr. Current bank account
Cr. Receivables
Because you made entries like
Dr. Purchases
Cr. Current bank
Drawings - its a contra entry in equity section.
Dr. Equity- value reduced here
Cr. Drawings - money fell here.
After the wrong transaction
Dr. Drawings
Cr. Current bank
So we have to give the money back
Dr. Receivable
Cr. Drawings
After transfer
Dr. Current bank
Cr. Receivables.
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