Question

Transaction of withdraw Rs.1000 and goods worth 500 for personal use. Journalize the transaction​

Answer 1

drawings ac .....Dr. 1500

to purchase ac 500

to. cash. ac. 1000

Answer 2

Journals of the given transaction​:

The entries cam be passed in two ways :

Drawing a/c dr…. Rs. 1000

to cash a/c rs. 1000

( being withdrawn for personal use)

Drawing a/c dr…. Rs. 500

to purchases’ a/c rs. 500

(being the goods worth rs. 500 withdrawn for personal use)

Note: We can also pass combined journal entry.

Combined entry :

Drawing a/c (1000+500) dr…. Rs. 1,500

to purchases’ a/c rs. 500

to cash a/c rs. 1000

(being the amount withdrawn for personal use)

This entry can be passed in two different ways. Here, we need to create a drawings account as 1000+500. 1500 worth of goods and cash. A drawings account is a type of an account that is used when there are withdrawals made either of goods or cash for the personal use of the partner or the owner.