by Sharon
(Saskatchewan, Canada)
I have been making a general journal entry each month to document owner's draw.
I understand how cash is to be entered, but not how personal use of inventory is to be entered. This is an example of the monthly entry I've been making
Dr. Owners Withdrawal
Cr. Cash
Cr. Inventory - gas
Cr. Inventory - parts
Cr. Inventory - confectionery
We count our inventory at year end and make adjustments to COGS and inventory accounts then.
My question is, am I doing this right? Or should I be including the revenue and/or expense accounts related to the inventory accounts?
Comments for Owner's Personal Use of Inventory
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