Withdrawal of goods for personal use

Accountancy

If an owner withdraws goods for his personal use, the book says to credit just purchases, but what about the direct expenses incurred on those goods like freight inwards and wages? How do we incorporate these things in our journal entry? What would be the entry that we would pass?

MS Kishore

CA Inter

★ 1K+

21-Sep-22 17:24

892

Answers (2)

Very good question. Awarding 50 iCash for this! In that case, you would debit Drawings and Credit respective expenses.

CA Suraj Lakhotia

Admin

21-Sep-22 17:26

Really a great question bro. Also proud to study at an institution which not just says but also proves again and again #Studentfirst. @Suraj sir

Aswin Chandar

CA Final

★ 40K+

21-Sep-22 17:33