Question

5. Goods worth R.s 5000 taken by proprietor for personal use. It’s called? class11​

Answer 1

Answer:

Explanation:

In accounting, assets such as Cash or Goods which are withdrawn from a business by the owner(s) for their personal use are termed as drawings. It is also called a withdrawal account.

The journal entry of the goods taken by the proprietor for domestic use is:  

Drawing account      Dr.

   To Purchases account

The goods taken by the proprietor for personal use, reduces the inventory of the business. Hence,it is placed on a temporary drawings account. It reduces the Owner's equity account. It is not an expense of the business.