Withdrew $1,000 cash for personal use, what is debit what is credit?

When you withdraw cash for personal use, it is considered as an owner's draw and it reduces the equity in the business. In accounting, this transaction is recorded as a debit to the owner's draw account and a credit to the cash account.

Here's the step by step process:

1. Identify the accounts involved: In this case, the accounts involved are the owner's draw account and the cash account.

2. Determine the type of accounts: The owner's draw account is an equity account and the cash account is an asset account.

3. Apply the rules of debit and credit: In the double-entry bookkeeping system, asset accounts increase with a debit and decrease with a credit. On the other hand, equity accounts increase with a credit and decrease with a debit.

4. Record the transaction: Since you are withdrawing cash (an asset), you will decrease the cash account by crediting it. And since this withdrawal is for personal use (an owner's draw), you will increase the owner's draw account by debiting it.

So, the journal entry for this transaction would be:

Debit: Owner's Draw $1,000 Credit: Cash$1,000

This means that the owner's draw account (equity) has increased by $1,000 (debit) and the cash account (asset) has decreased by$1,000 (credit).