Question

Journalize the transaction goods withdrawn for domestic use RS.5,000.

Answer 1

Answer

The journal entry will be :-

Drawings A/c      Dr           ₹ 5000

        To Purchases A/c                 ₹ 5000

( Being Goods Withdrawn for domestic use   ₹ 5000)

Short Explanation

》When , the proprietor  withdraws goods , cash or furniture from the business for his own use, i.e., For household or Domestic use. It is known as Drawings.

》It is a Personal Account  According to the Personal rule of journal (Debit =  The receiver , Credit the giver.)

》Drawings Account will be debited and Purchases Account will be credited because as a result of the transaction the net amount of purchases of the business is reduced.

                                                                                                               

Answer 2

Answer:

The journal entry will be :

Drawings A/c Dr ₹ 5000

To Purchases A/c Dr ₹ 5000

(Being Goods Withdrawn for domestic use ₹ 5000)

short explanation

>> When, the proprietor withdraws goods, cash or furniture from the business for his own use, i.e., For household or Domestic use. It is known as Drawings.

>> It is a Personal Account According to the Personal rule of journal (Debit = The receiver,Credit the giver.)

» Drawings Account will be debited and Purchases Account will be credited because as a result of the transaction the net amount of purchases of the business is reduced.