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Standard XII
Fundamentals of Accounting and Auditing
Question

What will be journal entry when cash is withdrawn from bank for personal use?
  1. Drawings A/c debit, bank A/c credit
  2. Cash A/c debit, drawings A/c credit
  3. Bank A/c debit, drawings A/c credit
  4. Bank A/c debit, capital A/c credit

A
Bank A/c debit, drawings A/c credit
B
Bank A/c debit, capital A/c credit
C
Drawings A/c debit, bank A/c credit
D
Cash A/c debit, drawings A/c credit
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Solution
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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 Drawings are usually made in the form of cash, but there could be other assets or goods withdrawn by the owner for his personal use.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.

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Similar Questions
Q1

Ananya withdrew Rs. 2,000 per month for personal use, recording each transaction as a debit to her drawing account and a credit to her cash account. The journal entry closing the drawing account requires a credit to _______ account & debit to _______ account.


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Q2

State whether the following statements are true or false:

(1) A journal voucher is must for all transactions recorded in the journal.
(2) Journal is a book of secondary entry.
(3) Narration is not necessary for each and every journal entry.
(4) Every transaction is recorded first in the journal.
(5) Live Stock A/c is a Nominal A/c.
(6) Bank of Maharashtra A/c is a Nominal A/c.
(7) Brokerage paid on sale of goods is debited to brokerage A/c.
(8) If the goods are sold the entry should be recorded in the journal.
(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
(10) Cash discount does not appear in the books of accounts.
(11) If rent is paid to the landlord, landlord’s A/c should be debited.
(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
(14) Premium paid on the life policy of the proprietor should be debited to insurance premium account.

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Q3
A journal entry cannot be passed in a journal proper with the debit and credit note.
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Q4

When bank column of a cash book shows a debit balance, what does it mean?

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Q5
___________ A/c is debited and _________ A/c is credited for the journal entry for payment of liabilities.
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