Journal Entry and Ledger Posting for Cash Drawings by the Partners of a Business.

In a Partnership Business, amount of withdrawals by the Partners to meet his/her personal expenses is termed as 'Partner's Drawings'.

Partner's Drawings Account is a Sub Ledger of Partner's Capital Account.

Drawings may be in Cash or other form like Fixed Assets, Current Assets etc.

Now let's discuss on Journal Entry and Ledger Posting, when Partners draw cash from a Business.

When Partners draw cash from Business to meet his/her personal expenses,

Partner's Capital Account shows Debit effect,

and Cash Account shows Credit effect.

Journal Entry

Ledger Posting

In Partner's Capital Account

In Cash Account.

Example :

In the Books of M/s.Narayan Industries(Partners : Sachin, Sourav and Virendra) Cash withdrawn by Sourav for ₹48,000/-and Virendra for ₹55,000/- on dt.24/08/2023 towards his personal expenses.

Pass necessary Journal Entry and post them into their respective Ledger Accounts for the above transaction.

In this transaction

Debit Ledgers are :

• Sourav's Capital Account and,

• Virendra's Capital Account

Credit Ledger is :

• Cash Account

Journal Entry

Ledger Posting

In Sourav's Capital Account

In Virendra's Capital Account.

In Cash Account