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Withdrawl by proprietor

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(Querist)
10 July 2021 Suppose owner invest capital in business Rs 60000 .with this he has made huge profit of Rs 120000. In the same year we withdraw the amount of Rs 70000 which is more than the capital amount .what is accounting entry to be pass .
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
10 July 2021 Capital account dr 70000
To bank/cash cr 70000
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RAKESH

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RAKESH (Querist)
10 July 2021 There is any problem if the negative capital will show in balance sheet .if has withdrawn more than his capital investment
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
10 July 2021 Add profit to his capital account, it will not be negative.
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CMA Poornima Madhava

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CMA Poornima Madhava (Expert)
12 July 2021 Alternatively, withdrawals can be debited to drawings account I think.

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