If the owner of business makes purchases for his own use (Isn't this contravening the business entity concept) how is this accounted for is it credit stock and debit drawings?
Cgoatham
Hi Clive,
You are correct if he takes stock from the business for personal use. Otherwise, DR Drawings and CR Bank.
Regards,
Genevieve.
Hi Genevieve,
Thanks for you help. Due to the options available the only way I could do it was to Debit Bank and Credit Purchases which has the same effect. I am beginning to realise that sometimes there is more than one correct answer.
Clive
Clive said:
“ Hi Genevieve, Thanks for you help. Due to the options available the only way I could do it was to Debit drawings and Credit Purchases which has the same effect. I am beginning to realise that sometimes there is more than one correct answer. Clive ”
Thanks for you help. Due to the options available the only way I could do it was to Debit drawings
and Credit Purchases which has the same effect. I am beginning to realise that sometimes there is more than one correct answer.
