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Owner takes inventories = do I credit the purchases or the inventories account? Student question - THANKS!!!

As per the subject above, would I credit the purchases or the inventories?

I would imagine the purchases as you only alter the inventories on stock take under an accrual system right?

Many thanks to all you helpful chaps.

Kurt

Reply to
GO
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I think you would debit owner's equity and credit inventory.

.
Reply to
Steve

"GO" wrote

If the owner takes inventory for personal use, you credit inventory (if that was where you first debited it) and debit his draw (or similar) account. The transaction would be at your cost.

Reply to
Paul Thomas, CPA

Thanks Paul and Steve.

Debit drawings. Credit Inventory.

However... we have GST to deal with.... so... that is why I get stuck on purchases....

I thought you would credit purchases and GST paid, and debit drawings, so cost amount on the purchases + 10% GST Paid credited, and debit drawings to cover both...

Thoughts?

Paul Thomas, CPA wrote:

Reply to
GO

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