Withdraw goods for personal use journal entry

Goods is an inventory/stock is a debit item and crediting the ledger reduces the amount of it.

Secondly, withdrawal for personal use will be expensed under an account called “drawings”.

Accounting Entry:

Dr: drawings a/c with Rs 8,000

Cr: Inventory/Stock a/c with Rs 8,000

The worth (Rs 10,000) will only be considered when sales occur.

Explanation: Drawings Account is debited because it decreases the balance of Capital Account and Purchases Account is credited because it decreases the balance of Purchases(Expenses) Account.

How Withdraw goods for personal use journal entry is done?

Dr Drawings 8000
Cr Stock 8000
Drawings can’t be at profit to the company.

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