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.
CAclubindia
