What is the journal entry for drawings for office use and personal use in accounting?

Answer 1

drawings means cash,goods or services drawn by the owner,investor for self consumption. where interest on drawings means the owner will also pay some interest to the business journal entries are as follows:

1.(if drawings made for personal use by owner) Drawing a/c-Dr to cash a/c-cr 2.(if goods taken) Drawing a/c-Dr to purchases a/c -Cr 3.(if drawings made from bank for office use) cash a/c-Dr to bank a/c-cr

4. if it's in cash then

drawings a/c Dr. cash a/c Cr. 5.if it's in material then drawings a/c Dr. purchase a/c Cr.

6.interest on drawings

drawings a/c....dr

to interest on drawings a/c.....(cr)

a) shown on credit side of profit and loss a/c.

b)deduct from capital and show on the liabilities side.