Withdrawals by the proprietor from the business for his personal use:
Whenever the proprietor of a business withdraws cash, goods or any other asset from the business for his personal or domestic use, it should be treated as drawings, and so, it should be recorded in the Drawings Account opened in the name of the proprietor.
Similarly, whenever the personal or household expenses of the proprietor, such as his club bill, life insurance premium, income-tax, school and college fees of his children, the wages and salaries of his domestic servants, the rent, electricity charges and water charges of his residence are paid by the business, they should be treated as drawings, and so, they should be recorded in the Drawings Account opened in the name of the proprietor.
The two accounts that are required to be taken into consideration for recording the cash withdrawn by the proprietor from the business for his personal use are (1) Drawings Account and (2) Cash Account (if cash is withdrawn from the business) or Bank Account (if money is withdrawn from the bank).
The two accounts that are required to be taken into account for recording the goods withdrawn by the proprietor from the business for his personal use are (1) Drawings Account and (2) Purchases Account (If the goods are withdrawn at cost price) or Sales Account (if the goods are withdrawn at selling price or if goods are withdrawn at cost price frequently).
The two accounts that are required to be taken into consideration for recording any asset, say furniture, taken away by the proprietor from the business for his personal or household use are (1) Drawings Account and (2) Concerned Asset Account.
The two accounts that are required to be taken into consideration for recording the private or domestic expenses of the proprietor paid by the business are (1) Drawings Account and (2) Cash Account (i.e., if such expenses are paid out of business cash) or Bank Account (if such expenses are paid by the bank).
Whenever the proprietor of a business withdraws cash, goods or any other asset from the business for his personal or domestic use, it should be treated as drawings, and so, it should be recorded in the Drawings Account opened in the name of the proprietor.
Similarly, whenever the personal or household expenses of the proprietor, such as his club bill, life insurance premium, income-tax, school and college fees of his children, the wages and salaries of his domestic servants, the rent, electricity charges and water charges of his residence are paid by the business, they should be treated as drawings, and so, they should be recorded in the Drawings Account opened in the name of the proprietor.
The two accounts that are required to be taken into consideration for recording the cash withdrawn by the proprietor from the business for his personal use are (1) Drawings Account and (2) Cash Account (if cash is withdrawn from the business) or Bank Account (if money is withdrawn from the bank).
The two accounts that are required to be taken into account for recording the goods withdrawn by the proprietor from the business for his personal use are (1) Drawings Account and (2) Purchases Account (If the goods are withdrawn at cost price) or Sales Account (if the goods are withdrawn at selling price or if goods are withdrawn at cost price frequently).
The two accounts that are required to be taken into consideration for recording any asset, say furniture, taken away by the proprietor from the business for his personal or household use are (1) Drawings Account and (2) Concerned Asset Account.
The two accounts that are required to be taken into consideration for recording the private or domestic expenses of the proprietor paid by the business are (1) Drawings Account and (2) Cash Account (i.e., if such expenses are paid out of business cash) or Bank Account (if such expenses are paid by the bank).
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