Journal Entry - withdrawal from SB A/c

This query is : Resolved

Rajesh (Querist)
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22 September 2010 Dear Experts,
A sole proprietor says that whenever he wants money in the business he will withdraw that much amount from SB a/c and will put into the business.
Since the business is carried in the status of sole proprietor while filing the return also the SB A/c is included in the Balance Sheet.
For instance the proprietor has to travel expenses, for that Rs.10000 is required means we have to pass the entry also in the SB A/c and in the books of the business. Please tell me whether the following journal entries are correct.
In his personal books:
Cash A/c Dr. 10000
To SB A/c 10000
(being the amount withdrawn for business purpose - travelling)

Investment - (business) A/c Dr. 10000
To cash A/c 10000
(being the amount put into the business)

In the books of the business:

Cash A/c Dr. 10000
To Current A/c 10000
(being the amount brought into the business to meet out the traveling exp.)

Bank (Current A/c) A/c Dr. 10000
To Cash A/c 10000
(being the amount deposited in the Current A/c) - This entry will come if all the exp. are incurred through bank only. Else directly exp. can be met thru cash itself.

Traveling Exp. A/c Dr. 9584
To Bank (Current A/c) A/c 9584
(being the exp. incurred as per the bill)

With regards,
Rajesh.

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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22 September 2010 All Entries are correct except:

Cash A/c Dr. 10000
To Current A/c 10000

It should be
Cash A/c Dr. 10000
To Capital A/c 10000

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Journal Entry - withdrawal from SB A/c

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