Journal Entry and Ledger Posting for Cash Drawings by the Proprietor.

In a Proprietorship Business, amount of withdrawals by the proprietor to meet his/her personal expenses is termed as 'Drawings'.

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 the Proprietor draws cash from a Business.

When the Proprietor draws cash from Business to meet his/her personal expenses,

Drawings Account shows Debit effect,

and Cash Account shows Credit effect.

Journal Entry

Journal Entry for Cash Withdrawal by the Proprietor from Business.
Ledger Posting

In Drawings Ledger Account.

Cash withdrawal by the Proprietor from Business - Posting in Drawings Ledger Account.

In Cash Account

Cash withdrawal by the Proprietor from Business - Posting in Cash Account

Example :

In the Books of M/s.Subhadra Seeds(Prop:Jagannath Thakur), Cash withdrawn by the Proprietor towards purchase of cloth for his wife for ₹4,500/- on dt.27/09/2022.

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

In this transaction,

Debit Ledger is :

  • Drawings Account

Credit Ledger is :

  • Cash Account

Journal Entry

Journal Entry for Cash withdrawals by the Proprietor from Business - Example

Ledger Posting

In Drawings Ledger Account.

Cash withdrawals by the Proprietor from Business - Posting in Drawings Ledger Account - Example

In Cash Account

Cash withdrawals by the Proprietor from Business - Posting in Cash Account - Example


Location: Cuttack, Odisha, India

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