Write the journal entry to record the owner withdrawing $1,000 into his company

Finance Jan 13, 2021

Write the journal entry to record the owner withdrawing $1,000 into his company.

Expert Solution

It will also reduce the owner's equity in the business. If an owner withdraws $1,000 for personal use, you need to create a debit entry for $1,000 in the drawings account for the owner, such as "John Smith, Drawings" or "John Smith, Drawing Cash." A corresponding credit entry is made in the "Cash" account.

FOR EXAMPLE-

Owner's drawings a/c Dr. 1,000

to cash account 1,000

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