Journal entry withdrawal from bank for personal purpose

This query is : Resolved

ANKIT PUNAMIYA (Querist)
Follow

31 July 2012 journal entries in the books of mr bipin.(proprietor)
# drew from bank Rs 40000 for his personal purpose
case1) no entry bcoz the business of the proprietor is not related here what is related here is just the bank and he is withdrawing for his personal purpose. for eg if it was written as drew cash/goods for his personal purpose . here he is not withdrawing from his business but from the bank and that too for his personal purpose.
case2) drawings a/c .............dr
to bank a/c
is this correct as we have to assume here that he is withdrawing from his current a/c an d not from his savings A/C
PLEASE TELL ME WHICH ONE IS COORECT WITH REASONS. thank you.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

31 July 2012 For business, debit drawings account.

ANKIT PUNAMIYA

ANKIT PUNAMIYA (Querist)
Follow

31 July 2012 i din't get you. can u clarify further

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

31 July 2012 Proprietor is withdrawn cash from Business current account for personal use can be treated as normal drawing only, Debit Drawings a/c, Credit Bank a/c.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now