Journal & drawings help please
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Hi, Im a little confused here.
When the owner takes drawings is it entered in the journal or the cash book as the book of prime entry?
From what I read in the Osborne tutorial when the owner takes goods from the business for his own use or if part an expense is charged to the owners drawings then you use the journal.
However in the tutrorial activities 20.3, the answers for (g)Henry Lewis withdraws cash £100 for his own use, say the book of prime entry is the cash book.
But in the workbook 20.4 the answers for (f)Sam withdraws cash from the bank as drawings, say that the book of prime entry is the journal!
This has really confused me, can anyone shed some light on it please? Hope Ive made sense x
When the owner takes drawings is it entered in the journal or the cash book as the book of prime entry?
From what I read in the Osborne tutorial when the owner takes goods from the business for his own use or if part an expense is charged to the owners drawings then you use the journal.
However in the tutrorial activities 20.3, the answers for (g)Henry Lewis withdraws cash £100 for his own use, say the book of prime entry is the cash book.
But in the workbook 20.4 the answers for (f)Sam withdraws cash from the bank as drawings, say that the book of prime entry is the journal!
This has really confused me, can anyone shed some light on it please? Hope Ive made sense x
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Comments
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Re:Journal & drawings help please
Hi
You've been waiting a while, so I will try and answer. (And there has been football match...)
As far as I'm aware it would be Cashbook is Book of Prime Entry, for drawings from cash/bank. Journal used for unusual things like error-correction, buying/seling assets, bad debts or drawings from one of the expense accounts or goods (purchase or sales account), etc.
Is this work you have handed in to tutor and received back?
I haven't got the answers to the Workbook. I think you should check with your tutor, if it still doesn't make sense, or you don't get another answer from other students. Ask again, here and someone will respond...0 -
Re:Journal & drawings help please
Thanks for your reply. My tutor did check the workbook & answers say journal. I did ask about it & he confused me more by saying something like, normally cash book but if there isnt 1 then journal. Im not too convinced he knew :? My other classmates are just as baffled as me!
How you explained it is how I thought it was0