cash withdrawn by neha for personal use.what is it entry
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suppose
principal be = Rs 1000
rate =5%
time =1 year
Simple interest = p×r×t/100
1000×5×1/100
50 is the answer I think so
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Answer:
When the owner of a business withdraws money for personal use, they reduce cash in the business therefore,it requires an additional entry in a drawings account because the drawing account is a capital account. It also reduces the owners equity.
Explanation:
Neha will have to create a debit entry for the money withdrawn in the drawings account and a corresponding credit entry in the cash account of the business.
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