Question

journal entry- goofs worth RS.500/- taken for personal use.

Answer 1

HEY ✌️
➡️Its Drawing A/C Dr. 500
To Inventory A/C 500

Answer 2

Journal Entry:

Drawings A/C  Dr     Rs. 500

        To Purchases A/C    Rs.500

(being goods taken for personal use)

Explanation :

When goods are withdrawn for personal use, purchased goods decreases.

Therefore , purchases which actually shows debit balance needs to be CREDITED.

Goods are taken by the proprietor for personal use.

It is treated as drawings and drawings is an asset to the business. Hence DEBITED.