BOOKS OF ACCOUNT

Journal :

The word journal means a diary or a day book. In older days all monetary transactions were recorded in chronological order in the journal book based on golden rule of accounting. The entries in journal in our earlier illustration would have been as follows :

Journal

Date	Particulars	Dr. (Rs.)	Cr. (Rs.)
April 1	Cash	15,000
	To PQR’s Capital A/c		15,000
April 2	Bank	10,000
	To Cash		10,000
April 6	Goods/stock	10,000
	To Cash		5,000
April 7	To Creditors	7,200	5,000
	Cash
	Debtors	3,600
	To Goods/Stock		9,000
	To Capital A/c		1,800

However in modern accounting systems the journal is mainly divided into three parts –

1.        The General Journal.

2.        Sales and Purchase Day Books or Journals

3.        Sales Return and Purchase Return Books or Journals.

1.  The General Journal is used for recording —

(a)        Opening Entries

(b)        Closing Entries, and

(c)        Transaction of a special nature

In the general journal the following columns are normally provided.

Date                       Particulars                                   LF          Debit(Rs.)           Credit(Rs.)

 At the foot of each entry the narration is given which shows the nature of and where necessary the authority for the entry passed.

The amount shown in the debit column of the journal entered on the debit side of the ledger and the amount shown in the credit column of the journal are entered on the credit side of the ledger.

2. Sales and Purchase Day Books or Journals.

Each credit sale (i.e other than cash sales) are entered in the Sales Day Book or Journal with such details as are required e.g. date, name, invoice no., amount, discount allowed etc. At periodical intervals say, monthly, quarterly, half yearly or yearly additions of all entries in the Sales Day Book are made. The personal account of buyers are posted to the debit side of each buyer’s account and the total amount of sale for the respective period is credited to sales following the golden rules to debit the receiver and credit what goes out.

In case of credit purchase (i.e., other than cash purchase) purchases made by an enterprise are similarly recorded and posted to the credit of the suppliers’ account in the ledger (Personal A/c. credit the giver) and Purchase A/c is debited (Debit what comes in).

3. Sales Returns and Purchase Returns Day Books or Journals

These books or journals record sales and purchase returns. When goods already sold are returned by the buyer, they are recorded in Sales Return Day Book. Similarly when good purchased are returned to the buyer they are recorded in Purchase Return Day Book.

These journals occupy the converse position to the Day Books or Journals. Thus in case of Sales Return Day Book, Sales or Return Inward A/c. is debited and the Personal A/c. is credited. Similarly, when purchases are returned Purchase A/c is credited & Personal A/c is debited.

Ledger

Ledger is defined as a “Book which contains in a summarised and classified form of permanent record of all transactions. Ledger is called the principal book of account as final information pertaining to financial position of a business emerges from this book. The form of an account in the ledger is given below :

Dr.			Title of the Account			Cr.
Date	Particulars	JF	Amount	Date	Particulars	JF   Amount
			Rs.			Rs.

Every account has a debit side and a credit side; Journal Folio or J.F. indicates the number of the page of the journal where the other affected account appears.

 Sometimes ledger is also maintained in a “ running account format” as follows –

Title of the Account

	Date	Particulars	Folio	Dr.	Cr.	Balance
				Rs.	Rs.	Rs.

Posting of Entries

Consider the following Journal Entry :

Date	Particulars	L.F.	Rs.(Dr.)	Rs.(Cr.)
2003
May 18	Purchases A/c	Dr.	5,000
	To Bank A/c			5,000
	(Being goods purchased).

The above journal entry when posted to the ledger accounts would appear as follows:

Dr.			Purchases Account				Cr.
Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
(2003)			Rs.	(2003)			Rs.
May 18	To  Bank A/c		5,000

[The debit side of the Purchase A/c is greater. To maintain symmetry the balance is carried down (c/d) at the end of the month to the credit side and brought down again at the beginning of the following month i.e., June 1st to the debit side. Thus it can be seen that the Purchase A/c has a debit balance.]

Dr.			Bank Account				Cr.
Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
(2003)			Rs.	(2003)			Rs.
				May 18	By Purchases		5,000

Subdivision of the Journal

Where the number of transactions are many it would be time consuming and cumbersome if each and every transaction were to be entered in a single Journal. Usually firms maintain subsidiary books to record transactions. These books are

  

1.       Cash Book (to record cash and bank transactions)

2.       Petty Cash Book (to record cash payments involving small amounts)

3.       Sales Book (to record credit sales)

4.       Purchase Book (to record  credit purchases)

5.       Sales Return Book (to record return from customers)

6.       Purchase Returns Book (to record return to suppliers)

7.       Bills Receivable Book (to record acceptances received)

8.       Bills Payable Book (to record acceptances given)

9.       Journal Proper (to record transactions which cannot be entered in any of the above specialised Journals)

1.  Cash Book

All transactions relating to each cash are recorded in the cash book, and on the basis of such a record ledger accounts are prepared. The different types of cash book are :

1.       Simple Cash Book containing Cash Column only

2.       Two Column Cash Book containing both Cash Column and Bank Column

3.       Three Column Cash Book containing Cash, Bank and Discount columns.

(1)    Simple Cash Book

The simple cash book is maintained strictly for cash transactions, a bank book being maintained separately for bank transactions. The form of a simple cash book is like that of any other account and is as follows:

	Dr.	Receipts		Payments	Cr.
Date	Particulars		LF  Amount   Date	Particulars	LF  Amount

(2) Two Column Cash Book

Unlike the simple cash book the Two Column Cash Book combines both bank and cash transactions for the sake of convenience due to the ever increasing bank transactions. The ruling of this book is –

Dr.		Receipts			Payments	Cr.
Date	Particulars	LF	Cash	Bank  Date	Particulars   LF   Cash	Bank

  

The cash book is so ruled that the debit column of cash and bank are placed alongside each other likewise with the credit column of cash and bank. The bank column contains details of payment made by cheques and money received and paid into the bank A/c.

In the folio columns the letter “C” is used whenever cash is being paid into the bank or there is a receipt from the bank, “C” means contra item and described transaction affecting only cash and bank accounts.

Illustration 2 :

Enter the following transactions in a two column cash book :

1997

Jan 1 Balances brought dawn – bank Rs. 5,000 and cash Rs. 450 3 Withdrew Rs. 2,000 from bank

5      Bought goods for Rs.1,500 paying by cheque

8      Purchased stationery by cash Rs.50

11     Paid electricity bill Rs.100 by cheque

15      Sold goods for Rs.2,000 and received cheque

20      Paid into bank Rs.150

					Two Column Cash Book
Dr.		Receipts						Payments			Cr.
Date		Particulars	LF	Cash	Bank	Date		Particulars	LF	Cash	Bank
(1997)				Rs.	Rs.	(1997)				Rs.	Rs.
Jan 1	To	Balance b/d		450	5,000	Jan 3	By	Cash	C		2,000
Jan 3	To	Bank	C	2,000		Jan 5	by	Purchases			1,500
Jan 15	To	Sales			2,000	Jan 8	By	Stationery		50
Jan 20	To	Cash	C		150	Jan 11	By	Electricity			100
						Jan 20	By	Bank	C	150
						Jan 31	By	Balance		2,250	3,550
				2,450	7,150					2,450	7,150
Feb 1	To	Balance b/d	2250	3,550

Payments can easily be identified as either cash or bank payments. If a payment is made directly from bank account e.g., by a standing order it appears in the bank account column. Payments of cash are entered in the cash column. When an amount is received by cheque it should be recorded directly in the bank column. The banking on any cash is a separate transaction.

  

(3) Three Column Cash Book

The three column cash book has the cash and bank discount column. Cash discount is an incentive given to customers to pay before the date specified. It encourages early payment and when given to a customer is a loss and when received from a supplier is a gain. Since this discount arises only when cash is received or paid it is recorded in the cash book, discount allowed on the debit side and discount received on the credit side of the cash book. The discount columns are totalled and not balanced. The form of a three column cash book is illustrated with the following example:

Illustration 3 :

2003

May 1

Balances Brought down – bank Rs. 3080, cash Rs. 709

2

Paid wages in cash Rs. 218

4

Received Rs. 177 cash from Kiran after allowing him a discount of Rs. 13.

6

Paid Ravi Rs.188 after deducting discount of Rs. 12 by cheque.

8

Received cheque for Rs. 485 from Ali after allowing him a discount of 3%.

10

Received cash from Joshi of Rs. 145.5 a discount 3% being deducted.

Date

Particulars

LF   Disc.

Cash

Bank

Date

Particulars  LF

Disc. Cash

Bank

(2003)

Allowed

Rs.

Rs.

(2003)

Recd.

Rs.

Rs.

May 1

To

Balance b/d

709

3080

May 2

By

Wages

218

May 4

To

Kiran

13

177

May 6

By

Ravi

12

188

May 8

To

Ali

15

485

May 10 To

Joshi

4.50

145.50

.

May 11 By

Balance c/d

813.50 3377

32.50

1031.50

3565

12

1031.50 3565

May 11 To

Balance b/d

813.50

3377

The total of the debit discount column i.e., discount allowed is transferred to the discount allowed account in the ledger. Similarly, discount received (credit discount column) is transferred to the discount received account in the ledger.

Petty Cash Book

In any business there will be numerous small cash payments. It would be advantageous if these payments could be kept separate from the main cash book. This separate book is called Petty Cash Book.

Advantages of maintaining a Petty Cash Book are :–

(i)       It saves the time of the General Cashier.

(ii)      As the record of Petty Cash is checked by the cashier periodically, so the mistake is rectified immediately.

(iii)      Under Imprest System, the Petty Cashier is not allowed to keep idle cash with him.

  

(iv)       The chance of misappropriation is less.

(v)        It trains the staff to handle money with responsibility.

(vi)       It reduces the work load of general Cashier and the volume of General Cash Book becomes small.

The Imprest System

In this system the cashier gives the petty cashier a fixed amount of cash to meet his needs for the ensuing period. At the end of the period the cashier ascertains the amount spent by the petty cashier and reimburses the same to him. The petty cash in hand will then be equal to the original amount at the beginning of the period.

Amount given by cashier at the beginning	Rs.	200
Expenses during the period	Rs.	142
Petty cash in hand	Rs.	58
Reimbursement from cashier	Rs.	142
Petty cash at the end of the period	Rs.	200

Illustration 4 :

2003

July 1 The cashier of a firm gives Rs. 200 as imprest to the petty cashier. Payments of petty cash during July are :

2                   Postage stamps purchased Rs. 10

3                   Pencils bought Rs. 3

4                   Busfare Rs. 3

5                   Cleaning charges Rs. 15

6                   Wages to coolie for shifting furniture Rs. 15

9                   Taxi fare paid Rs. 10

10         Refreshments bought for customers for Rs. 17

14                   Telegram charges Rs. 7

15                   Stationery bought Rs. 9

17                   Repair of chair Rs. 12

18                   Battery for clock purchased Rs. 6

21                   Stamps bought Rs.8

23                   Spare keys made for manager’s cabin Rs.5

24                   Busfare Rs. 2

26                   Casual labour Rs. 9

27                   Carbon paper Rs.5

29                   Newspaper (special edition) Rs. 3

30                   Busfare Rs. 3

Write up the petty cash book, cash book and the necessary ledger accounts.

				Basics of Financial Accounting
Dr.					Petty Cash Book								Cr.
		Receipt						Payment
Date	Particulars	Amt.	Date	Particulars   Total			Pos-	Stati-	Trave-	Clea	Other
(2003)		Rs.	(2003)		Rs.		-tage	-nery	-lling	-ning	expns.
July 1	To Cash Book	200
			Jul 2	By Postage		10	10
			3	By Stationary		3		3
			4	By Travelling		3			3
			5	By Cleaning		15				15
			6	Other Expns.		15					15	Wages. to
												coolie
			9	By Travelling		10			10
			10	By other Expns.		17					17	Refreshment
			14	By Postage		7	7
			15	By Stationery		9		9
			17	By other Expns.		12					12	Repair of
												chair
			18	By other Expns.		6					6	battery
			21	By Postage		8	8
			23	By Other Expns.		5					5	Spare Key
			24	By Travelling		2			2
			26	By Other Expns.		9					9	Casual
												labour
			27	By Stationery		5		5
			29	By Other Expns.		3					3	Newspaper
												(spl. edition)
			30	By Travelling		3			3
					142		25	17	18	15	67
			31	By Balance b/d		58
					200
Aug 1	To Balance b/d	58
Aug 1	To Cash	142
Dr.					Cash Book								Cr.
Date	Particulars		LF	Cash	Bank	Date		Particulars			LF	Cash	Bank
(2003)				Rs.	Rs.	(2003)						Rs.	Rs.
						July 1		By Petty Cash				200

  

GENERAL LEDGER

Dr.		Travelling Account			Cr.
Date	Particulars	Amount	Date	Particulars	Amount
(2003)		Rs.	(2003)		Rs.
July 31	To Petty Cash	18

Dr.		Printing & Stationery Account			Cr.
Date	Particulars	Amount	Date	Particulars	Amount
(2003)		Rs.	(2003)		Rs.
July 31	To Petty Cash	17

Dr.		Postage & Telegram Account			Cr.
Date	Particulars	Amount	Date	Particulars	Amount
(2003)		Rs.	(2003)		Rs.
July 31	To Petty Cash	25

Similarly there will be Clearing Expenses and Other Expenses Accounts.

3. Sales Book

The sales book records all credit sales of goods of business, cash sales are recorded in cash book. The form of a sales book can be explained with the following example :

Transactions of Beauty Ltd.

2003

June 1 Sold to P Ltd. 25 jars of cream @ Rs. 37 and 200 packets of powder @ Rs. 9.50 each less T.D. @ 10%.

2      Sold old books to B Ltd. on credit Rs. 750

4      Sold to S stores 35 packets of powder @ Rs. 9.50 for cash.

7              Sold to A departmental stores 310 packets of powder @ Rs. 9.50 and 40 jars of cream @ Rs. 36 each less T.D. @ 10%.

  

Sales Book

Date	Particulars	LF	Invoice No.	Amount	Amount
(2003)				Rs.	Rs.
Jun 1	P. Ltd.
	– 25 jars of cream @ Rs. 37			925.00
	– 200 packets of powder @ Rs. 9.50			1,900.00
				2,825.00
	Less : T.D. @ 10%			282.50	2,542.50
Jun 7	A Departmental Stores
	– 40 jars of cream @ Rs. 36			1,440.00
	– 310 packets of powder @ Rs. 9.50			2,945.00
				4,385.00
	Less : T.D. @ 10%			438.50	3,946.50
					6,489.00

Note. Cash sales and sale of the old books (asset) in cash are not entered in the sales book. Trade discount is allowed where a customer purchases goods above a certain quantity or amount. Only the net amount i.e., after deduction of trade discount is considered. No entry is made in the ledger accounts.

Dr.		Sales Account			Cr.
Date	Particulars	Amount	Date	Particulars	Amount
(2003)		Rs.	(2003)		Rs.
June 01	To Balance c/d	6821.50	04	By Cash	332.50
			07	By Sales as per sales book	6489.00
		6821.50			6821.50
	Difference between Trade discount and Cash discount
	Cash Discount		Trade Discount

When payment is made earlier than the stipulated date.

It is normally allowed on purchases.

Cash discounts allowed/ received	Trade discount is not entered in ledger.
are accounted for in the ledger.
It is not deducted from the invoice.	The amount of trade discount is deducted from the invoice.

  

4. Purchase Book

The purchase book records all credit purchases of goods of business, cash purchases and credit purchases of assets are not entered in this book. The form of a purchase book can be explained with the following illustration.

Illustration 5 :

Transaction of M/s Sporting Ltd.

2003

July 1 Purchased from Indian Sports Co. on credit 75 cricket bats at Rs. 100 each 90 footballs at Rs. 80 each less trade discount at 10%.

	July 3	Purchased from Gripwell Co. 45 hockey sticks at Rs. 85 each for cash.
	July 7	Purchased vacuum cleaner for office use from M/a Spic & Span on credit Rs. 3050
	July 8	Purchased on credit from Wicket Pvt. Ltd. 40 Cricket bats at Rs. 105 each 70
		footballs at Rs. 82 each less trade discount at 10%
	July 9	Purchased from Green & Co. 15 Hockey sticks at Rs. 75 each on credit.
		Purchase Book
Date		Particulars	LF	Amount	Amount
(2003)				Rs.	Rs.
July 1	Indian Sports Co. 75 Cricket bats @ Rs. 100 each			7,500.00
	90 Footballs @ Rs. 80 each			7,200.00
				14,700.00
	Less : Trade Discount 10 %			1,470.00	13,230.00
July 8	Wicket Pvt. Ltd. 40 Cricket bats @ Rs. 105 each			4,200.00
	70 Footballs @ Rs. 82 each			5,740.00
				9,940.00
	Less : Trade Discount 10%			994.00	8,946.00
July 9	Green and Company 15 Hockey Sticks @ Rs. 75 each				1,125.00
		Total			23,301.00

Cash purchases of goods and purchase of assets (i.e., vacuum cleaner) are not entered in the purchase book. From the purchase book a purchase account is prepared.

Note. The Purchase account records the cash purchases also.

  

				Basics of Financial Accounting
Dr.				Purchase Account					Cr.
Date		Particulars	JF	Amount	Date		Particular	JF	Amount
(Jul ’03)				Rs.	(Jul, ’03)				Rs.
3	To	Cash		3825.00	Oct 9	By	Balance c/d		27126.00
9	To	Purchases as per
		purchase book		23301.00
				27126.00					27126.00
Dr.				Purchase Ledger					Cr.
Date		Particulars		Amount	Date	Particular			Amount
(Jul ’03)				Rs.	(Jul, ’03)				Rs.
					1	By	Purchases A/c
						Wicket Pvt. Ltd.			8946.00
					8	By	Purchases A/c		23,301.00

5. Sales Return Book

The sales return book is also known as Returns Inward Book.

Where customers frequently return the goods sold to them it would be convenient to record the returns in a separate book called the Sales Return Book. Where goods are returned by customers a document known as credit note will be sent to them, showing the amount of allowance given in respect of the returns. The term credit note takes its name from the fact that the customer’s account will be credited with the amount of the allowance, so as to show the reduction in the amount owed by him. The Sales Return Book is illustrated below with assumed figures :

Sales Returns Book

Date	Particulars	JF	Amt.	Amt.
(July 2003)			Rs.	Rs.
5	Indian Glassware Co.
	20 Glass Cups @ Rs. 8		160.00
	Less : Trade Discount @ 10@		16.00	144.00
27	Hindustan Dept. Stores		150.00
	15 Coffee Cups @ Rs. 10
	Less : Trade Discount @ 10%		15.00	135.00
	Total			279.00

The form of credit note is illustrated below :

Indian Glassware Co.

15, N.S.C. Road

Chennai - 600 052

To,

Bric - A - Brac Co. Ltd.

19, Lal Street,

Delhi - 110 103

Credit Note No. 8/83

Per unit

Rs.

		Rs.
20 Glass Cups	8.00	160.00
Less : Trade discount 10%		16.00
	Total	144.00

The total of the Sales Return Book is transferred to the sales returns account.

Dr.				Sales Return Account				Cr.
Date		Particulars	JF	Rs. P	Date	Particulars	JF	Rs. P
(2003)					(2003)
Jul 31	To	Sales		279.00	Jul 31	By Balance c/d		279.00
		returns as per
		sales return book		.
				279.00				279.00
Aug 1	To	Balance b/d		279.00

Dr.			Indian Glassware Co. Account					Cr.
Date	Particulars		JF	Rs. P	Date	Particulars	JF	Rs. P
Jul 5	To  Balance c/d			144.00	Jul 5	By Sales Returns		144.00
				144.00				144.00
					Jul 6	By Balance b/d		144.00

Dr.			Hindustan Departmental Store						Cr.
Date	Particulars		JF	Rs. P	Date		Particulars	JF	Rs. P
Jul 27	To  Balance c/d			135.00		By	Sales Returns		135.00
				135.00					135.00
					Jul 28	By	Balance b/d		135.00

  

6. Purchases Returns Book

When goods are returned to suppliers these are recorded in the Purchases Returns or Returns Outward Book. A debit note is sent to the supplier stating the amount of allowance to which the firm returning the goods is entitled. The term Debit Note stems from the fact that as the liabilities to the supplier is accordingly reduced and his personal account must be debited to record this. The Return Outward book is illustrated below.

Returns Outward Book

Date	Particulars	JF	Rs.	Rs.
May 15	Travel Luggage Co.
	2  40” Suitcases @ Rs. 500		1,000.00
	Less : Trade discount @ 10%		100.00	900.00
May 26	Bags & Bags Co
	One 24” travel bag			200.00
			Total	1,100.00

The total of the Returns Outward Book is transferred to the Returns Outwards account.

Dr.			Return Outward Account				Cr.
Date	Particulars	JF	Rs. P	Date	Particulars	JF	Rs. P
May 31	To  Balance c/d		1,100.00	May 31	By Returns		1,100.00
					Less : Outwards as per
			.		Returns Outwards Book		.
			1,100.00				1,100.00
				June 1	By Balance b/d		1,100.00

Dr.					Travel Luggage Co.				Cr.
Date		Particulars		JF	Rs. P	Date	Particulars	JF	Rs. P
May 15	To	Returns Outward			900.00	May 15	By Balance c/d		900.00
					900.00				900.00
May 16	To	Balance c/d			900.00

Dr.				Bags & Bags Co.				Cr.
Date		Particulars	JF	Rs. P	Date	Particulars	JF	Rs. P
May 26	To	Returns Outward		200.00	May 26	By Balance c/d		200.00
				200.00				200.00
May 27	To	Balance b/d		200.00

  

7. Bills Receivable Books

When the number of bills or promissory notes received is large, instead of journalising each receipt of bills, which would be cumbersome, a register to record all receipts of bill is maintained. Every month this register are totalled. Receipts of cash in respect of bills will be recorded in the cash book. Only the endorsement of bills in favour of other parties or dishonour will be journalised. The Bill Receivable Book can be illustrated with the following example :

Illustration

X received the following bills :

Sept 5 Drew on A a bill of exchange at 3 months which was accepted and returned by him on 5th Sept. 2002. The amount being Rs. 1,500.

Sept 20 Drew on C a bill of exchange for Rs. 2,500 at 2 months which was accepted on the same day. The bill was payable at Union Bank of India.

Bills Receivable Book

Sr. No.	From whom	Acceptor	Date of		Term		Date of	Amount		How
	received			bill			maturity		disposed of
1	A	A	Sept 5		3 mths		Dec. 8		1,500
2	C	C	Sept 20		2 mths		Nov 23		2,500
									4,000
	The total of the Bills Receivable is transferred to the Bills Receivable A/c.
Dr.				Bills Receivable Account						Cr.
Date	Particulars		JF	Rs. P	Date		Particulars		JF	Rs. P
1996
Sep 30	To  Sundries as per			4,000.00
	Bills Receivable Book
Dr.				A’s Account						Cr.
Date	Particulars		JF	Rs. P	Date		Particulars		JF	Rs. P
					2002
					Sep 5	By Bills Receivable A/c				1,500.00

  

  

8. The Bills Payable Book

The Bills Payable Book recording the acceptances given can be illustrated with the following example.

Illustration 7 :

M accepted the following bills.

2002	13	Accepted P’s bill for Rs. 3,000 due in one month.
Aug
Aug	17	Accepted Q’s bill for Rs. 5,000 due in two months payable at Canara Bank

Bills Payable Book

Sr. No. Date of			To whom	Term		Date of		Where	Amount		Remarks
	issue		given		maturity			maturity		Rs.
1	Aug 13		P	1 mth		Sep 16		—		3,000
2	Aug 17		Q	2 mth		Nov 20	Canara Bank			5,000
										8,000
Dr.				Bills Payable Account							Cr.
Date		Particulars		JF	Rs. P	Date		Particulars		JF	Rs. P
						2002
						Aug 31		By Sundries			8,000.00
								as per Bills Payable Book
Dr.					P’s Account						Cr.
Date		Particulars		JF	Rs. P	Date		Particulars		JF	Rs. P
2002
Aug 13	To	Bills Payable A/c			3,000.00
Dr.					Q’s Account						Cr.
Date		Particulars		JF	Rs. P	Date		Particulars		JF	Rs. P
2002
Aug 17	To	Bills Payable A/c			5,000.00

9. Journal Proper

All transactions which do not find place in the subsidiary books find place in the journal proper. Opening entries, closing entries, adjustment entries, rectification entries etc. appear in the journal proper. [All these entries are explained in detail in subsequent Study Notes ].

e.g. Purchase of fixed asset on credit :

Asset A/c                                                          Dr.

To Creditor’s A/c

e.g. Drawings made by the proprietor

a) Cash drawn

Drawings A/c                                                     Dr.

To Bank/Cash A/c

b) Goods withdrawn at sale or purchase price for personal use :

Drawings A/c Dr. To Purchase/Sale A/c