He paid Rs 10000 for households expense journal entries?
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Household Expenses A/c ----- Dr. 10000
To Cash A/c Cr. 10000
(Being household expenses paid by cash)
To Cash A/c Cr. 10000
(Being household expenses paid by cash)
rdroshankumar5p801zu:
Teachers saying that the entries is Drawing a/c dr to cash a/c
Oh, if you are recording this in the books for a business - then the entry has to be Drawings. As this is not a business transaction, and the person is using the cash meant for business for the purpose of payment of household expenses. As such, your teacher is correct.
Any cash withdrawn for the purpose of payment of any expenses other than that of the business, or for purchase of any goods which were not purchased with a view for the business but with a completely different purpose, are drawings. I hope you get it now.
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