Login

How will I journalise the following entry:-

Drew Cash from bank for office...Rs. 1,000.

why won't we debit drawings account but rather debit cash account?

Drawings Account is debited only when the cash/bank amount is withdrawn by the proprietor for his/her personal use.

As per the given transaction, cash is withdrawn from Bank for the office use. It implies that this transaction will affect two accounts namely- Cash A/c and Bank A/c. Therefore, the Journal entry should be:

  Cash A/c  Dr.  1,000

  To Bank A/c   1,000

 

In this transaction, Drawings A/c will not be debited as the motive behind the withdrawal of cash is not for the personal use, in fact, it is for the office use or business use. This practice is followed as per the Real Account, which states that whenever the cash is coming into the business, Cash A/c should be debited.

  • 12
View Full Answer

cash a/c dr    1,000

     to bank a/c                      1,000

we dnt debit drawings a/c because drawings denot the cash withdrawn by owner for his/her personal use..and cash denots business. we make entries as an accountant on the basis of business not on the basis on businessman(business entity concept says business and businessman are two different entities).

  • 7

 cash a/c dr    1,000

     to bank a/c                      1,000

we dnt debit drawings a/c because drawings denot the cash withdrawn by owner for his/her personal use and cash denotes business. we make entries as an accountant on the basis of business not on the basis on businessman(business entity concept says business and businessman are two different entities).

  • 6
What are you looking for?