PRC-1 · Chapter 2 · Question 61 of 100
The owner of 'Galaxy Traders' withdraws Rs. 50,000 cash directly from the business bank account for personal use. Which book of prime entry is used to record this transaction?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Cash Book
Explanation
Any physical cash or bank transaction, including owner withdrawals (drawings) from the bank, must be recorded directly on the payment (credit) side of the cash book.
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