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Rectification
Accountancy
For the 1st , can I write ?? Bank Dr.20000 To drawings 20000 And exp acc Dr. 12000 To bank 12000 ?? But answer is : Exp acc Dr. 12000 To drawings acc 12000
Answers (3)
Jitendra Kumar
20,000 drawn from the bank already debited to drawing A/c. Out of these 12,000 used for business purpose. Now you are required to pass only rectification entry by crediting drawing A/c and debiting expenses A/c. Expenses A/c Dr 12000 To Drawing A/c. 12000
Hope this is clear. You can not pass the entry which you proposed as money is not coming to bank again. It's that out of 20,000 that was withdrawn, 12,000 got used for business. So, instead of drawings, one should have debited expenditure A/c.
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