Natalia Alva In: Category - Journal EntriesWhat is the journal entry for cash withdrawn from bank for office use?cash withdrawn from bank for office usejournal entry ShareFacebook1 AnswerVotedRecent Aastha 2020-08-31T19:46:15+05:30Added an answer on August 31, 2020 at 7:46 pm This answer was edited. Cash Withdrawn from Bank for Office Usethe cash withdrawn from bank for office use shall be recorded in the books as:Journal Entry: (Using modern rules of accounting)Why is cash account debited?When we withdraw an amount from the bank we receive cash i.e the entity’s cash in hand balance increases. As per the modern rules of accounting, we debit the increase in an asset. And so in the above entry cash account is debited.Why is bank account credited?When an amount is withdrawn from the bank the entity receives cash while the balance in his bank account reduces. Thus as per the modern rules of accounting, we credit the decrease in an asset. The bank account of an entity is shown under the head of current assets and so it’s credited since the withdrawals lead to a reduction in the balance with the bank. Hence, in the above entry bank account is credited.Journal Entry: (Using golden rules of accounting)Why is the cash account debited?As per the golden rule of accounting, cash account is classified as a real account. As per the rule for a real account, we debit what comes in and credit what goes out. Hence, when the cash is withdrawn for the office use we receive cash hence, cash account is debited.Why is the bank account credited?As per the golden rule of accounting, the bank account is classified as a personal account. As per the rule for a personal account, we debit the receiver and credit the giver. Here, Bank balance reduces i.e bank is the giver hence, its credited.Aastha Mehta.7Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?