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Commerce · Q357

Accounting

Graduate and Post Graduate · Commerce · question 357

Q357

_____ will generally show a debit balance

A.
Bank loan
B.
Bad debts recovered
C.
Drawings
Answer
D.
Salary payable

Answer: Option C

Solution

Answer: Option C
Solution:
Drawings will generally show a debit balance. A drawing account is an accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships.