Vidyalelo
Commerce · Q69

Accounting

Graduate and Post Graduate · Commerce · question 69

Q69

Which of the following accounts will be debited if the business's owner withdraws cash from business for personal use?

A.
Drawings
Answer
B.
Cash
C.
Business
D.
Stock

Answer: Option A

Solution

Answer: Option A
Solution:
Drawings accounts will be debited if the business's owner withdraws cash from business for personal use. Goods withdrawn for personal use by the owner of a business reduce inventory and are recorded on a drawings account.