PRC-1 · Chapter 2 · Question 9 of 100
The owner of 'Falcon Enterprises' withdrew Rs. 50,000 cash directly from the business bank account for personal use. Where is this primarily recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Cash book
Explanation
The cash book records all receipts and payments made through the business bank account or physical cash. Drawings made via a bank withdrawal are recorded on the payment (credit) side of the cash book.
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