Question

withdrawn 1000 on a permanent basis out of capital journal entry​

Answer 1

Explanation:

What are Drawings and its Journal Entry (Cash, Goods)?

Drawings

In accounting, assets such as Cash or Goods which are withdrawn from a business by the owner(s) for their personal use are termed as drawings. It is also called a withdrawal account. It reduces the total capital invested by the proprietor(s).

In the case of goods withdrawn by owners for personal use, purchases are reduced and ultimately the owner’s capital is adjusted. The adjustment is done at cost price.

For small firms withdrawals are ordinarily seen in the form of cash or business assets, however, if a business is incorporated they are often observed in the form of dividends or scrip dividends. It is a natural personal account out of the

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