Multiple choice

When cash is withdrawn for personal use, then the effect will be shown on the _________ side of cash book.

  1. debit

  2. credit

  3. Both 1 and 2

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Withdrawing cash for personal use is a type of drawing that reduces the business's cash balance. Because it is a cash outflow, it is recorded on the credit side of the cash book.

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