Question

Purchased car for personal use
RS: 10000
How to treat in Accounting Equation​

Answer 1

Answer:

If an owner withdraws Rs 10000 for personal use, you need to create a debit entry for Rs1,0000in the drawings account for the owner, such as "John Smith, Drawings" or "John Smith, Drawing Cash." A corresponding credit entry is made in the "Cash" account. At the end of the year, the drawings account is closed out.