Question

A withdrawal of goods from business by the proprietor should be credited to _______________.

• A. Drawing A/c
• B. Capital A/c
• C. Purchases A/c
• D. Sales A/c

Answer 1

The correct option is C Purchases A/c

The withdrawal of goods by the owner for personal use is placed on a temporary drawings account and reduces the owners equity. It is not an expense of the business. Goods are withdrawn from the business and taken by the owner, which reduces the inventory of the business.