Multiple choice

Mr.A withdraws Rs.15,000 from his business for personal use. Here, account to be credited is

  1. cash

  2. bank

  3. capital

  4. creditors
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When an owner withdraws cash for personal use, it is recorded as drawings. Since cash is an asset leaving the business, the cash account must be credited to reflect the decrease.

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