Question

paid electricity bill of the proprietor house through debit card journal rntry​

Answer 1

Answer:

Drawings A/c Dr.

To Bank A/c

Explanation:

Personal expenses of owner is drawings for business accounts.

Answer 2

Answer:

The journal entry of the transaction Paid electricity bill of the proprietor house through debit card will be

Drawing A/c .......................Dr

            To Bank A/c

(House bill of proprietor Paid)  

Explanation:

• It has been assumed that bank debit card has been used to pay proprietor electricity bill.
• By separate entity concept proprietor and business are separate entities and hence Proprietor's electricity bill is regarded as drawings for the business and not a business expenditure.
• Drawings Account will be debited and Bank account(Asset Account) will be credited.

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