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A proprietor withdraws cash from the business for private use, he

Accounts - Principles of Accounts
JAMB 2019

A proprietor withdraws cash from the business for private use, he

  • A. credits cash account and debits bank account
  • B. credits cash account and debits drawing A/C
  • C. debits cash account and credits drawings account
  • D. debits bank account and credits drawings account
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Correct Answer: Option B
Explanation

When a proprietor withdraw cash for private use, himself or owner's use, it is regarded as drawings.
The account involve is cash and drawings account. Therefore, the cash account gives while the drawings account receives.


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