BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capital
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Cash
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Bank
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Drawings
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Detailed explanation-1: -(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
Detailed explanation-2: -Cash is withdrawn for personal use, therefore drawings account should be debited.
Detailed explanation-3: -The amount which the owner withdraw from business for personal use is called as drawings. It is shown as deduction from the amount of capital in the balance sheet.
Detailed explanation-4: -Withdrawal of any amount in cash or kind from the enterprise for personal use by the proprietor is termed as Drawings.
Detailed explanation-5: -A: Drawings Account. A withdrawal of cash from the business by the proprietor should be credited to the Drawings Account. This account is used to record the amount of goods or cash that the proprietor withdraws from the business for personal use.