took over goods for business use
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But I would re answer it here for ease.
Goods withdrawn from the business for personal use are “Drawings”.
It is a receivable for the business from the owners/proprietors.
the journal entry is ;
Drawings Account - Debit (Drawings increase)
To Stock Account - Credit (Assets decrease)
Drawings Account - (Personal Account) - Rule>Debit the Receiver
Stock Account - (Real Account) - Rule> Credit what goes out
Goods withdrawn from the business for personal use are “Drawings”.
It is a receivable for the business from the owners/proprietors.
the journal entry is ;
Drawings Account - Debit (Drawings increase)
To Stock Account - Credit (Assets decrease)
Drawings Account - (Personal Account) - Rule>Debit the Receiver
Stock Account - (Real Account) - Rule> Credit what goes out
aleena47:
how arrived this journal entry
check it now u will understand
i know that goods withdrawn for personal use is drawings. but in this case withdraw for office use or business purpose. won't it effect purchase account
it will wont affect becoz already purchased goods we r just withdrawing for business use
so entry will be
drawings acc to stock ac
thanks
ya ok
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