Journal entry

All dear friends,

If cash is w/d from the bank, cash dr and bank ct. After that, if he is proprietor, taking money, drawings a/c will be debited and cash dt. If the cheque is paid for his personal use as he is proprietor, drawings a/c will be debited and bank is credited.>>>>>>>sekar

1) Create an advance on the name of Person withdrawing the amount:-

Advance against Company Work Dr.

    To Cash A/c.

2) Adjust it by passing a journal entry when expense bill is submitted

Expense A/c Dr.

To Advance against Company Work

Hope it will help.

cash a/c dr.

             To bank a/c

(cash withdrawn for office use)

Cash withdrawal for business for office use is not drawing as drawings are cash withdrawals for personal use. Hence, the given transaction is a contra. Hence the entry would be,

Cash A/C           Dr.

To Bank A/C.