PRC-1 · Chapter 1 · Question 34 of 100
The double entry to correctly record the withdrawal of cash from a business bank account by the proprietor for personal use is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Drawings, Credit Bank
Explanation
When an owner withdraws cash for personal use, it decreases the business bank asset (Credit Bank) and increases drawings (Debit Drawings), which effectively reduces equity.
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