Question

What will be journal entry when cash is withdrawn from bank for personal use?

• A. Drawings A/c debit, bank A/c credit
• B. Cash A/c debit, drawings A/c credit
• C. Bank A/c debit, drawings A/c credit
• D. Bank A/c debit, capital A/c credit

Answer 1

The correct option is A Drawings A/c debit, bank A/c credit

Drawings are the amounts taken by the owner of a business for his personal use in anticipation of profit. Drawings are usually made in the form of cash, but there could be other assets or goods withdrawn by the owner for his personal use.

Journal Entry will be:-

Drawing A/c Dr.

To Bank A/c.