Question

purchase a car for personal use rupees 400000 and the payment made out of a business by cheque journal entry​

Answer 1

Drawings A/c. Dr. 4,00,000

To Bank A/c... 4,00,000

[Being purchased for

personal use].

Whatever transactions were, if the transaction includes personal use, you should use Drawings A/c. And in here

it was mentioned to withdraw by cheque.

so we should use Bank A/c.

Hope it helps you ✌️☺️☺️

Answer 2

Drawings account dr 400000

To bank account 400000

[Being purchased a car for personal use through cheque]

☆Drawing account is debited because the amount is withdrawn by the owner from the business for personal use

☆Bank account is credited. according to the rule debit what comes in credit what goes out and in this entry payment is made through cheque hence ,bank is credited