Question

Goods for personal use (rs1000 sales price, rs 800 cash price )

Answer 1

what to do in this question accounting equation or journal entry

Answer 2

Answer:

Drawings A/c    Dr  800

   To Purchases A/c    800

Explanation:

Whenever goods is withdrawn from business for personal use it is stated to be drawings. It is reduced from owners equity.

Since goods is what is being drawn out so purchases will be decreased.

In this case two amounts are mentioned one is 800 and the other is 1000.

But while posting this books 800 is what we will consider as drawing is an expense and it must be registered at the price of original value oif goods.