proprietor took goods for household purpose Rs 2000
Answers
Explanation:
Drawing account dr
To purchase/stock account
stock being asset is a real account and the golden rule of account regarding real account says “ debit what comes in, credit what goes out”
Here stock is going out of the business so should be credited.
drawings is a personal account and golden rule says “ debit the receiver credit the giver” here proprietor is the receiver so drawing should be debited.
you can write purchase you can write stock in credit side.
Answer:
As in the business books of accounts, transactions related to business take place and are recorded. Personal transactions are treated as drawings. It results in the reduction of liability of business towards owner so drawings is always debited.
The journal entry would be as follows:
Drawings a/c dr
To goods withdrawn by proprietor a/c
I hope this helps
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