Drawing are deducted from ___________.

Sales

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Purchases

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Returns outward

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Capital.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Capital.
Drawings is the money that is withdrawn by the owner for personal use and is an asset for the company. Capital is money brought by the owner in the business and is liability for the company. Drawings are deducted from the capital to reduce the liability of the company and not shown on the assets side.

Suggest Corrections

Similar questions

10

A

B

A

B

A

Join BYJU'S Learning Program