Accountancy, asked by rdroshankumar5p801zu, 1 year ago

He paid Rs 10000 for households expense journal entries?

Answers

Answered by thebananaboy

Household Expenses A/c ----- Dr. 10000
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

thebananaboy: 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.

thebananaboy: Any cash withdrawn for the purpose of payment of any expenses other than that of the business, or for purchase of any goods which were not purchased with a view for the business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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