Recording of Transactions – I · Class 11 · CBSE · Commerce Accountancy
Which of the following accounts must be credited when a business owner withdraws goods for personal use?
Practice question from Recording of Transactions – I (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-232FDC
Which of the following accounts must be credited when a business owner withdraws goods for personal use?
- A.Drawings Account
- B.Capital Account
- C.Purchases AccountCorrect answer
- D.Sales Account
Solution
When goods are withdrawn for personal use, Drawings Account is debited and Purchases Account is credited because goods are removed from stock, reducing net purchases.
More from Recording of Transactions – I
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- Goods costing Rs. 10,000 were given away as charity. Which journal entry is correct?
- What is the primary book of original entry in which all business transactions are recorded in chronological order?
- Machinery purchased for cash is recorded in the Journal with which of the following entries?
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