Question

A sole trader took costing Rs.1000 from stock his own use. the normal selling price of the goods is Rs.1500... which of the following journal entries would correctly recorded this?



a) Dr. Drawing A/c and Cr. Sales A/c by rs.1500

b) Dr. Drawing ac and Cr. purchases A/c by 1000

c) Dr. Drawing A/c and Cr. purchases A/c rs.1500

d) Dr. sales A/c and Cr. Drawing A/c by rs.1000

pls answer with crct and valid answer

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Answer 1

Answer:

are you from Kps Raipur

ANS: A

Answer 2

Option (b). The journal entry, in this case, is - Dr. drawings a/c and Cr. purchases a/c by ₹1000

Explanation:

• Sometimes, the proprietor of the business takes some cash or goods from the stock of the business for his use, this is called "Drawings."
• When posting the entry for drawings in the "journal" of the business, the drawings account is debited with the amount that is withdrawn by the proprietor, and cash or purchase account is credited (cash account when cash is withdrawn and purchase or goods account when goods are taken) with the same amount.
• Here, the proprietor has taken goods worth ₹1,000 for personal use, there is no use for the selling price. So the journal entry will be Dr. drawings a/c and Cr. purchases a/c by ₹1000.