Mr. Ramesh withdrew cash for business from the bank of Rs.5,500/- , the journal entry would be
A. Dr – Bank a/c & Cr – Cash a/c
B. Dr – Cash a/c & Cr – Bank A/c
C. Dr – Mr. Ramesh a/c & Cr – Cash a/c
D. Dr – Mr. Ramesh a/c & Cr – Bank a/c
Answer:B
Mr. Ramesh withdrew cash for business from the bank of Rs.5,500/- , the journal entry would be
A. Dr – Bank a/c & Cr – Cash a/c B. Dr – Cash a/c & Cr – Bank A/c C. Dr – Mr. Ramesh a/c & Cr – Cash a/c D. Dr – Mr. Ramesh a/c & Cr – Bank a/c
Explanation: Due to cash withdrawal, the Bank balance will be reduced, and the Cash balance will be increased. Therefore, the “Cash account” will be debited, and the “Bank account” will be credited.