Question

Mr. Kashyap has to pay school fees of his daughter. For this purpose he withdraws Rs. 13,000 from his business. Can he do so?​

Answer 1

Answer:

Explanation:

Drawings a/c dr 13,000

    To cash a/c  13,000

( withdrew cash from business

for personal use )

-------------------------------------------------

Answer 2

Answer:

Yes he can do so

Explanation:

If the proprietor ( businessman ) withdraws money/goods from business for his/her personal use, then the amount of goods/money withdrawn is called as drawings.

Drawings is the decrease in capital.

If the proprietor can introduce capital, then he/she can also withdraw them for personal use in need.

Journal entry in this case will be,

Drawings A/c . . . Dr - 13,000

‎ ‎ ‎ ‎ ‎ ‎To cash A/c - 13,000

( Being cash withdrawn for personal use )

Additional Information :-

Journal entry for drawings :-

In case of goods withdrawn :

Drawings A/c . . . Dr - Amount

‎ ‎ ‎ ‎ ‎ ‎To purchase A/c - Amount

In case of money withdrawn ( either cash or bank ) :

Drawings A/c . . . Dr - Amount

‎ ‎ ‎ ‎ ‎ ‎ To cash/bank A/c - Amount