Question

Motor car worth rs 120000 took over by the proprietor- journal entry

Answer 1

Journal Entry :

If the motor car is goods i.e, the business carried on is trading of motor cars-

Drawings A/C     Dr  Rs.1,20,000

     To Purchases A/C       Rs.1,20,000

(Being goods withdrawn for personal use)

If the motor car is an asset to the business-

Drawings A/C   Dr      Rs.1,20,000

    To Motor Car A/C     Rs.1,20,000

(Being Motor car took over for personal use)

Answer 2

Hey mate ✌️✌️


Journal Entry ⏬⏬⏬⏬


Drawing A/c...............................................Dr..120000
......................To Motor car...120000


✨ Hope this helps you ✨