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How should the withdrawal of goods from stock by the owner of the business, for personal use, be recorded in books of accounts of an entity?

358868Medium DSSSB TGT Computer Science 0 replies 0 views
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How should the withdrawal of goods from stock by the owner of the business, for personal use, be recorded in books of accounts of an entity?
  • ADebiting Drawing account and crediting cash account
  • BDebiting Purchases account and crediting capital account
  • CDebiting Capital account and crediting drawing account
  • DDebiting Drawing account and crediting purchases/stock account
Correct answer: D

Explanation

When the owner takes goods for personal use, it is drawings: the Drawings account is debited and the Purchases (or stock) account is credited.

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