A Cheque Received From Mr. A, A Debtor, For Rs. 4000 Was Directly Received By The Proprietor Who Deposited It Into His Personal Bank Account. Pass Journal Entry
Here, we record either two journal entries or one single combined entry but the result will be the same in both cases. When the cheque / check received by proprietor / sole owner from Mr. A ( Accounts Receivable / Sundry Debtor ) of Rs. 4000, then from the business points of view, we record the following entry as shown below: (i) Cash a/c 4000 Mr. A a/c 4000 (Cash Received From Mr. A) But, when the proprietor withdrew the cash from the business and deposited into his personal account, then from the point view of business, it is Drawings , so we record the following entry as shown below: (ii) ...