Journal Entry

327 views 3 replies
Goods withdrawal for personal use.

can i use this journal Entry .Is it wrong?

Capital a/c........Dr
To Drowings
Replies (3)

Goods  withdraw  for  personal  use . 

1)     Drawings                   A/c       Dr 

        To Goods                  A/c        Dr 

( Being  Goods  withdraw  for  personal  use )  

 

Transfer  to Capital   Account 

 Capital                            A/c        Dr 

 To Drawings                   A/c         Cr 

(  Drawing  transferred  to capital  account  )   

so  your  above  entry  is transfer entry  . 

But in some cases I have seen,
Drowings a/c......Dr
To Purchase

please clarify the effect in trading a/c

Goods  purchase  for  Business  purpose use for personal  purpose  so  here Goods  and purchase are one  and same  , drawings  will  be  reduce  form  purchase A/c  .  purchase A/c  with  reduce  balance  will be  reflected  in Trading  A/c . 

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