Drawings on the Payments side of cash book?

System

Hi There,

I am completing a cash book exercise and i need to input cash drawings on the cr(payments side) of the book, does it go in the bank column or the cash column?

Thanks,

Ben.

System

Re:Drawings on the Payments side of cash book?

Maybe im missing something here, but does it not depend on whether the drawings were paid out of the bank account or cash in hand?

System

Re:Drawings on the Payments side of cash book?

Would there not be a drawings column so the payment can easily be identified and can be taken to the correct account when intputting info from the cash book into the ledgers?

System

Re:Drawings on the Payments side of cash book?

As far as I can see Drawings is just another name for money spent on personal items. It can be cash, from the bank account or transfers. If its from the bank account I would put a separate column in payments for drawings and the same if its cash spent. Then when you come to do your bank account or your cash account you can see what money was spent on the business and what money was spent for personal usage.

Hope that helps

System

Re:Drawings on the Payments side of cash book?

oic your question is "Do you have a seperate column in the cash book analyis columns for drawings?"

So as the other poster explained it would of course be yes.

System

Re:Drawings on the Payments side of cash book?

Thanks everyone,

Now when i transfer the cash drawings payment from the cash book to the ledger system, do i put it in a seperate cash drawings account?

Thanks,

Ben.

System

Re:Drawings on the Payments side of cash book?

Hiya

There may be a separate account for drawings which is offset against the capital account when analysing how much is owed to the owners, but I think drawings are usually taken to the capital account so it reduces the amount owed to the owners:

DR Capital or Drawings
CR Bank

The credit in bank will reduce the cash in the bank account.