Question

withdrawls of cash from bank by propreitor for office use

Answer 1

This transaction affects two accounts Cash account (cash is being drawn) ,Bank account (its being drawn from bank)..Cash and Bank accounts are Real accounts (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

in contention with the above rules

Cash is coming in ..so it should be Debited..and Cash from bank is going out..so it should be credited..


So the Journal Entry will be

Cash a/c Dr

To Bank a/c

(being cash withdrawn for office use)