Journal Entry Question
(Complex Owner Drawings)

by Raudah
(Singapore)

How do I do the double entry for this?


Alex withdrew $100 cash and took goods costing $100 (selling price was $150) for personal use.

Comments for Journal Entry Question
(Complex Owner Drawings)

Click here to add your own comments

Multi-Entry Transaction
by: Dean

This will actually be a single transaction with three entries:

(1) Debit the Drawings account for $200.
(2) Credit the Cash account for $100.
(3) Credit the Inventory account for $100.

Note that even with multiple entries, the sum of debits must always equal the sum of credits. In this particular case: $200 = $100 + $100.
Goods taken by owner for personal use
by: Tajammul Islam

In Case of Trading business the journal entry would be as follows

Debit Drawing A/c $---

Credit Purchases A/c $---

Goods Taken by owner for Personal use

Click here to add your own comments

Return to Ask a Question About This Lesson!.









© Copyright 2009-2020 Michael Celender. All Rights Reserved. 
Click here for Privacy Policy.