Question

draw 100000Tsh cash for personal use

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Bank A/c - Personal A/c , where Banker gives money to the company , therefore its credited

Drawings A/c - Personal A/c , where proprietor its the receiver of the money therefore its debited

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Journal entry

Drawings A/c  Dr  1,00,000

        To Cash A/c                       1,00,000

(being withdrawn for personal purpose)

Answer 2

Drawing A/c...........dr.                100000

To, Cash A/c..........                                                100000