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-   -   Adjusting entries (https://www.askmehelpdesk.com/showthread.php?t=60095)

  • Feb 4, 2007, 03:52 PM
    elecho12
    Adjusting entries
    What is the entry for An owner that withdrew cash for personal use from the Business.
    Say his name is raymond This is what I entered

    Dr: Raymond
    Cr: Cash

    Is this correct?

    Do I have to enter it in the capital account and as what a debit or credit
  • Feb 4, 2007, 09:15 PM
    CaptainForest
    The JE would be:
    Dr. Raymond, Drawing XXX
    Cr. Cash XXX

    The Raymond, Drawing account is an account that offsets the Raymond, Capital account.

    So at the end of the year, when it comes time to close the Drawing account, you would:
    Dr. Raymond, Capital XXX
    Cr. Raymond, Drawing XXX

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