GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Goods withdrawn by the proprietor for his personal use are
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Added to the purchases
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Treated as sales at cost price
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Shown as a deduction from the sales
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Shown as a deduction from the purchases
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Explanation:
Detailed explanation-1: -Goods withdrawn by the proprietor from business is debited to the Drawings A/c.
Detailed explanation-2: -Drawings a/c represents the owner. It provides the information relating to the amounts withdrawn by the owner or proprietor for personal use. The same account is used to record the value of goods withdrawn for personal purposes also.
Detailed explanation-3: -Withdrawal of money and/or goods by the owner from the business for personal use is known as drawings.
Detailed explanation-4: -Goods withdrawn by their for his personal use has not been recorded in the books of accounts. Which accounting concept has been violated? Answer-The business entity concept will be violated.
There is 1 question to complete.