Question

Give journal entries of 1. withdrew from bank for office use 2.withdrew cash for personal use from office

Answer 1

1)..Withdrew cash from bank for office use.

so this transaction affects two accounts ... Cash a/c and Bank accounts are Real accounts.. (they are because because cash(cash in hand) and Bank(cash at bank) are assets..and All assets and Liabilities come under Real account)


we know that...

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

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

so.... The Journal Entry will be..

Cash a/c Dr. ××××

To Bank a/c. ×××××

(being cash withdrawn from bank )

2) Withdrew cash For Personal use from office...same explanation as above...but since it is withdrawn for Personal use..we will call it as "d Drawings a/c".. which is an expense..and hence should be debited (check rules above)..

The Journal Entry will be..

Drawings a/c Dr xxxx

To Bank a/c xxxx

(Being Cash withdrawn for Personal use)

Answer 2

Explanation:

1. Cash ac dr.

To bank ac

2. Drawings ac. dr.

To bank ac.