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Answer» Given "withdrawn from Bank for Personal use/ household expenses"
This Transaction affects Two accounts.. Drawings a/c(withdrawn for Personal use) , cash a/c(cash withdrawn)..
Drawings a/c is a nominal account (all expenses incomes GAINS losses come under it) and Bank a/c is a Real account...(all the ASSETS and Liabilities come under it)
The Three golden rules of accounting..
Personal Account - Debit The reciever, credit the GIVER
Real account - Debit what comes in, credit what goes out
Nominal account - Debit All expenses and losses, credit All incomes and gains
In contention with the above rules... Drawings being an expense to US.. should be debited and since cash is Going out from bank , should be credited...
So The JOURNAL Entry will be
Drawings a/c Dr. 10000
To cash a/c 10000
(Being cash withdrawn for Personal use).
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