Drawing by Proprietor.

Sir what does paid rent on the personal account of proprietor mean? Does it refers to Drawings or does it mean that the rent was paid by the proprietor from his own personal A/c?

asked Aug 20, 2015 in Subsidiary Books by Mahima (23 points) 93 views

1 Answer

0 votes
It means rent paid by the business for the premises occupied by the proprietor for his personal use.  This is drawings and entry for that will be:
Drawing A/c     Dr.
  To Cash A/c
answered Aug 20, 2015 by jbsclasses (3,971 points)