Question

Jan. 31 Furniture withdrawn for personal use 1000
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Answer 1

Answer:

Debit - Drawings a/c

Drawings a/c represents the owner. It provides the information relating to the amounts withdrawn by the owner or proprietor for personal use. The same account is used to record the value of goods withdrawn for personal purposes also.

Answer 2

Answer :

Journal Entry be like :

Drawings ac Dr. 1,000

To Cash ac 1,000

( Furniture Withdrawn for personal use )

• According to American Approach,If cash (or Assets) decreases, cash will be treated as Credit.

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