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Personal withdrawal from cash-in-hand

TBMSWTAMPATBMSWTAMPA Member Posts: 1

I have 'x' dollars in cash-in-hand, I would like to know how to create an accounting entry to record a personal withdrawal (personal use). Appreciate your help.

edited March 30, 2021 in Accounting Technical Support

Comments

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey @TBMSWTAMPA !

    Great question. To record this, what you'll want to do is record a transaction and categorize it as Owner Investment/Drawing. Owner Investment/Drawing is a category used to keep track of the money you pay into and take out of your business.

    When you pay for a personal expense from business funds, you'll bookkeep those transactions to owner investment/drawing to indicate that you took money from your business. When you deposit personal funds into your business, this category allows you to keep track of how much you've invested.

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