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WAEC Financial Accounting 2022 Question 8

Question 8

Double Entry and the Ledger

The entries for cash drawn from the bank by a proprietor for private use is: debit

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

Answer: C (Drawings Account; credit Bank Account)

Explanation

Money taken for private use is drawings (debit), and the bank balance falls (credit bank).