bought furniture for private use 6500... journal entry
Answers
Drawings A/C. Dr. Rs.6500
To Cash A/C. Or Bank A/C. Rs.6500
(Being furniture purchased for personal use)
Drawings A/C. Dr. Rs.6500
To Cash A/C. Or Bank A/C. Rs.6500
(Being furniture purchased for personal use)
Explanation:
In the given question the proprietor purchased the furniture 6500 rupees this purchase was made for his personal uses therefore making it a drawing. Drawings can be defined as a situation in which the owner withdraws or uses the firm's money for his or her personal uses. Here in our case the firm has bought the furniture for personal use therefore making it a drawing.
Drawings are a liability for the proprietor therefore since we are posting are journal entry from the point of view of the firm it is is a current asset for us because now the proprietor owes to the firm so so we debit drawings account and credit cash account as cash going out.
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