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Question
A business owner withdraws ₹ 25,000 for personal use. Which accounts are impacted?
Short Answer
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Solution
When the owner takes out ₹ 25,000 for personal use:
- Drawings Account is Debited: This personal account is debited to show the withdrawal made by the owner.
- Cash Account is Credited: This real account is credited since the business’s cash balance is reduced.
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