Question

drew Tsh 500000 from bank for business 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

Cash A/c - real A/c , where money comes into  the company therefore its Debited

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Journal entry

Cash A/c     Dr   5,00,000

          To Bank A/c                  5,00,000

(being cash withdrawn from bank )

Answer 2

Cash A/C. Dr. Rs.5,00,000

To Bank A/C. Rs.5,00,000

(Being cash withdrawn from bank for business use)