Question

What will be the recording for the journal entry for transaction sahil video for personal use?

Answer 1

Given"Goods taken for Personal use"

This transaction affects two accounts Drawings a/c, cash a/c..where Purchases is a nominal account(all expenses incomes gains losses come under nominal account) , cash is a real account.(All assets and Liabilities come under Real account)..


The Three golden rules of accounting are

Personal account - Debit the receiver , credit the giver

Real account - Debit what comes in, credit what goes out

Nominal account- Debit All expenses and losses, credit all incomes and Gains

As Per the above rules..since Drawings isan expense should be debited and cash is going out should be credited....



The Journal Entry will be..

Drawings a/c. Dr. xxxx

To cash a/c xxxx

(Being Goods drawn for Personal use)