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A business owner withdraws ₹ 20,000 in cash for personal use. Which account will be affected? - Commercial Applications

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प्रश्न

A business owner withdraws ₹ 20,000 in cash for personal use. Which account will be affected?

पर्याय

  • Drawings Account (Dr), Cash Account (Cr).

  • Cash Account (Dr), Drawings Account (Cr).

  • Capital Account (Dr), Drawings Account (Cr).

  • Expense Account (Dr), Cash Account (Cr).

MCQ
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उत्तर

Drawings Account (Dr), Cash Account (Cr).

Explanation:

When the owner withdraws cash for personal use, it reduces business capital.

Hence, Drawings A/c is debited (increase in drawings) and Cash A/c is credited (cash goes out).

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पाठ 11: Nature and Terminology of Accounting - EXERCISES [पृष्ठ १३४]

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सी. बी. गुप्ता Commercial Applications [English] Class 9 ICSE
पाठ 11 Nature and Terminology of Accounting
EXERCISES | Q I. 16. | पृष्ठ १३४
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