Question

Ramesh the owner of business withdrew cash Rs 2000 from the business for personal expenses ​

Answer 1

Answer:

Explanation:

Personal Account:

Debit the Receiver, Credit the Giver

Real Account:

What cames in Debit and what Goes out Credit

Nominal Account:

Expenses & Loss Debit, and Income, Profit Credit

Now Journal Entry is:

Drawing A/c ………… Dr

To Cash A/c

[Being the cash withdrawn by the proprietor for personal use]

Drawing A/c Debit because the Drawing is (Personal Account) and it is Receiver, so the Receiver also Debits based on Debit and Credit Rule.

Cash A/c is assets and assets is (Real Account). Therefore Cash A/c Credit because of Cash a/c goes out, and any types of assets go out is credit based on the Debit and Credit Rules.

Rules:

Drawing A/c - Personal Account - Receiver - Dr

Cash A/c - Real Account - Goes out - Cr