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JAMB Principles of Accounts 2005 Question 16

Question 16

Double Entry and the Ledger

Goods withdrawn from business for private use are credited to

  1. A.drawings
  2. B.purchases
  3. C.sales
  4. D.capital
Show the answer and explanation

Answer: B (purchases)

Explanation

Debit drawings and credit purchases, because the goods were bought for the business but not sold.