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Journal entry

CHAITRI SUDHAKARBHAI KHAROD (ARTICLE) (752 Points)

06 April 2020

If Mr A withdraws goods of rs 1500 from his business which is not recorded in BOA....

now , it will be recorded as..

(1) withdrawal a/c Dr 1500
to goods on withdrawal 1500

(2) A's capital a/ c Dr 1500
to withdrawal a/c 1500

is this correct? If yes...

then what's about cash entry??

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3 Replies

Tarun Kansal (37 Points)
Replied 06 April 2020

Correct entry is
Mr A capital A/c. Dr. 1500/-
To Purchases A/c. 1500/-
As no cash is involved here that's why no treatment for cash

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 April 2020

Yes... I agreed to Mr Tarun Kansal.,

@ Mr CHAITRI SUDHAKARBHAI.,

If You are maintained separately Withdrawal Account (Current Account) then You provide entry to Current Account only as above :

Mr A's Current (capital) A/c. Dr. 1500/-
To Purchases A/c. 1500/-

In case Only maintained Capital Account then provide entry as above :

Mr A's Capital A/c. Dr. 1500/-
To Purchases A/c. 1500/-

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