Amount withdrawn by the owner for his personal expenses is called______.

Drawings

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Personal Expenses

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Cash

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Assets

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Solution

The correct option is A Drawings
Its always better to separate personal and business expenses as it simplifies the book keeping. However, if the owner of a business has paid personal expenses using fund provided by the business then they need to be recorded as drawings and not as expenses.

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Amount withdrawn by the owner for his personal expenses is called______.

The correct option is A DrawingsIts always better to separate personal and business expenses as it simplifies the book keeping. However, if the owner of a business has paid personal expenses using fund provided by the business then they need to be recorded as drawings and not as expenses.

The correct option is A Drawings
Its always better to separate personal and business expenses as it simplifies the book keeping. However, if the owner of a business has paid personal expenses using fund provided by the business then they need to be recorded as drawings and not as expenses.