Question

amount withdrawn from bank 20000 journal entry
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Answer 1

Answer:

Before knowing the journal entry for the above transaction,you must know which account does cash and bank relate to.

Both cash and bank are real account .And as per real rule ,”Debit what comes in and credit what goes out.” Whenever we receive the cash, it should be debited as it is coming to us; similarly whenever it (cash)is being paid i.e.going away ,it must be credited.

So the entry for the above transaction will be:

Cash A/c Dr.

To bank A/c

(Withdrew cash from bank)

Also it your are making preparing cash book ,then contra entry will be done for it as in the first hand u r withdrawing the cash from the bank and, on the other hand ,bringing it to ur business.

I hope this ans.will be helpful to u.Feel free to ask any other matter /topic related to Account or any other subject related to Commerce stream.