No cash account is a permanent account. as u treated cash as a debit element in General journal against of Capital. Capital is a permanent account so cash too.
Drawings Account is a Temporary Account
why do you debit cash account and credit receivables for cash in transit
The temporary cash surplus is managed just like any other cash. The relevant transactions should be recorded on how the cash has been used.
1. Yes it is, drawing account is the contra account used to reduce the owners capital account in case of owners withdraw the money from business and it is temporary account which is ultimately closed to capital account
make it payable to yourself or cash and go to the bank and cash it.
Drawings Account is a Temporary Account
TEMPORARY ACCOUNT
what is a cash account
why do you debit cash account and credit receivables for cash in transit
The temporary cash surplus is managed just like any other cash. The relevant transactions should be recorded on how the cash has been used.
1. Yes it is, drawing account is the contra account used to reduce the owners capital account in case of owners withdraw the money from business and it is temporary account which is ultimately closed to capital account
Dividend is a temporary account at it is closed the retained earnings account at the end of fiscal year.
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[Debit] Petty Cash account [Credit] Cash account
Cash account has a debit as a normal balance so debit increases the cash account and credit reduces the cash account which is reverse of debit balance.
make it payable to yourself or cash and go to the bank and cash it.
# Cash account to Bank account # Bank account to Cash account # Bank account to Bank account