PRC-1 · Chapter 5 · Question 96 of 100
The double entry to record the withdrawal of cash from a business bank account by the owner is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Drawings, Credit Bank
Explanation
Withdrawal of cash by the owner decreases the business bank asset (Credit Bank) and increases Drawings, which decreases equity (Debit Drawings).
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