PRC-1 · Chapter 10 · Question 77 of 100
A business owner takes goods costing Rs. 2,000 from the shop for personal use. What is the double entry required to record this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Drawings Rs. 2,000, Credit Purchases Rs. 2,000
Explanation
Goods taken for personal use must be recorded at cost. The entry removes the cost from Purchases (Credit) and charges it to the owner's Drawings account (Debit).
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