Question

Drew a cheque for private use

Answer 1

Drawings A/c dr.

.... To Bank A/c...

[. Being cheque is drew for personal or private use.]

IN above journal entry,

Drawings is debit to business as it drew the amt for personal use and Drawings word is used for private use in accounts. Hence drawings debited and against which drawing is debited i. e cheque or bank is credited to business..


Note.. It always keep in mind that drawings can never be credited in books of accounts.

Answer 2

Goods purchased for cash..

The current transaction affects two accounts.. Drawings account(Cash drawn for Personal use), Bank account..(cash drawn from bank )..

Drawings s account is a nominal account ( All expenses incomes gains losses come under nominal account; Drawings is an expense)

Bank account is a real account ( all assets and Liabilities come under Real account: cash is an asset)


The Three golden rules of accounting are..

Personal account - Debit the receiver, credit the giver

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in, credit what goes out

In contention with the above rules..

Drawings account should be debited (its an expense)

Bank account should be credited (cash is going out)


so the Journal Entry will be...

Drawings account Dr xxxx

To Bank account xxxx

(Being cash drawn for Personal use h)