Journal entry - withdrawal from bank

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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 from his business . 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.

Replies (3)

Follow the link below :-

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the second case holds good here.......

1case : Whether pro. withdraw cash/bank (Credit cash/Bank ) for personal use than journal entry will be passed 

 Drawing Account .............................................Dr.                     xxxxxxx

                  To Bank/Cash Account                                                             xxxxxx

2case : Wether pro. withdraw good from own business than journal entry will be passed 

  Drawing Account..............................................Dr.                    xxxxxxx

                   To Purchase/Trading A/c                                                        xxxxxxx

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