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    ronaldhyd's Avatar
    ronaldhyd Posts: 8, Reputation: 1
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    #1

    Mar 21, 2009, 03:00 AM
    Journal Entry
    1) How the drawins of owner to be treated in the books of Account, in the case of Sole proprietorship.

    2) How the above drawins of owner to be treated in the books of Account of the owner, as income?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Mar 21, 2009, 04:56 AM

    DEBIT Drawings Account XXXX
    CREDIT Bank Account XXXX

    Being drawings by owner.

    ______________________________________

    DEBIT Salaries Account XXXX
    CREDIT Bank Account XXXX

    Being Salary Drawn by owner.

    _____________________________________
    ronaldhyd's Avatar
    ronaldhyd Posts: 8, Reputation: 1
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    #3

    Mar 22, 2009, 01:08 AM
    Thank you dear, need a further clarification about second section, looking for entry once the drawins amount received by the owner, second part is doing in owners personal books of Accounts. How salary can be debited in Owners books? It is an income for the owner. Ref your second entry.
    Regards
    Glen
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #4

    Mar 22, 2009, 02:48 AM

    This assumes that the owner converted
    His business into a COMPANY.
    He gets paid for his services to the Company.

    DEBIT Salaries Account XXXX
    CREDIT Bank Account XXXX

    Being Salary paid to the owner.
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