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WAEC Financial Accounting 2001 Question 30

Question 30

Double Entry and the Ledger

The accounting entries for recording cash withdrawn by the proprietor for personal use are, debit

  1. A.Cash and credit Purchases
  2. B.Purchases and credit Drawings
  3. C.Purchases and credit Cash
  4. D.Drawings and credit Cash.
Show the answer and explanation

Answer: D (Drawings and credit Cash.)

Explanation

Drawings increase (debit) and cash decreases (credit).