Personal withdrawal from cash-in-hand
TBMSWTAMPA
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.
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TBMSWTAMPA
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.
Comments
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.