Multiple choice general knowledge

What will be debited when cash is withdrawn from Bank.

  1. Debtor A/c

  2. Bank A/c

  3. Drawings A/c

  4. Cash A/c
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When cash is withdrawn from bank for personal use by the owner, it's treated as drawings. The Drawings A/c is debited because it reduces the owner's equity. This is not an ordinary business expense, but a personal withdrawal by the proprietor.

Keep practicing — related questions