Question

4 Drew cash from bank for office use 10000
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Answer 1

Answer:

The jounrka entry for this would be little tricky.

As the cash being withdrawn is being used to official use, it would be wrong to treat it as a drawing.

Cash in hand A/C. Dr.

To Bank A/C

(Cash being withdrawn for personal use)

The justification for this is the fact that cash in hand is increasing and the balance in bank is decreasing.

If the cash was to be used for personal use, we would have brought drawings A/C into use.