PRC-1 · Chapter 1 · Question 12 of 100
The proprietor of 'Style Garments' took home clothing inventory worth Rs. 15,000 for his family's personal use. Which account must be debited to accurately record this event?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Drawings account
Explanation
When an owner withdraws assets, including inventory or cash, from the business for personal use, it is recorded as a debit to the Drawings account. This decreases the overall owner's equity.
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