Drawings Journal Entry Question

Question:

What is the journal entry for this transaction?


Owner withdrew office equipment from business $800.

printer equipment office home

Solution:

This is a typical question to test you on the journal entry for drawings.

What makes it a bit more difficult than the usual is that the owner is withdrawing equipment instead of cash. However, that's the only difference.

Here is the journal entry for the above:

Debit: Drawings...................$800
Credit: Office Equipment.....................$800
Owner withdrew office equipment for personal use.


As usual, the drawings account is debited. This is because it is the opposite of capital, which occurs on the right side of our accounting equation. Drawings occurs on the left side, meaning we debit this account.

The contra entry, the credit, is to the asset the owner is withdrawing. Assets always increase on the left (debit) and decrease on the right (credit). So in this case we credit the Office Equipment account.

Hope that makes sense!

Feel free to add a comment or question further below.

Best,
Michael Celender
Founder of Accounting Basics for Students


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Comments for Drawings Journal Entry Question

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Drawings journal entries
by: sasa

Dr drawing
cr bank

Accountingggg 😊
by: Anonymous

Drawing debit
Office equipments credit

journal entry
by: Anonymous

withdraw a/c Dr.
To office equipment a/c

dr cr
by: Anonymous

dr withdraw $800
cr EQUIPMENT $800

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