Question

What is the journal entry of drawings from bank for office and personal use

Answer 1

Every Business seperates the owner from its business..He may be owner,but the constitution of the business is different from its owner....When an owner withdraws money for office use it is not treated in the books of accounts in the same way when he withdraws money for Personal use..

So when he draws money for his Personal use..it will be reflected as "Drawings" ..If he draws it for business then the treatment is normal .....

Where Cash,Bank are Real accounts and Drawings is a nominal account...

as Per golden rules of accounting... increase in asset should be debited and decrease in asset should be credited .and nominal account when represents expenses and losses should be Debited


So the Journal Entry will be -

Drawings a/c Dr xxxx

Cash a/c. Dr. xxxx

To Bank a/c. xxxx

(Being cash withdrawn from bank for Personal use and office use)