Question

What is the difference between cash withdrawn from the bank for office use and cash withdrawn for m bank for personal use

Answer 1

Answer:

if withdrawal is for business use and not personal use then journal entry is

cash a/c. Dr

To bank a/c

cash comes in so debited

bank is the giver so credited

if withdrawal if for personal use it means it's drawings

so journal entry is

drawing a/c Dr

To bank a/c

bank is giver that's why credited