MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Journal Entries for Recording Goodwill

Drawings made...

Question

Drawings made by the businessman increases his capital.

A

True

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

B

False

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

Open in App

Solution

The correct option is B False
The above statement is false as drawings account is a account that maintained to track money withdrawn from a business by its owner and it has no relation with capital, so definitely it doesn't increase in any capital.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Drawings made by the proprietor increases his capital.

Q. Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2018–19.
Opening Capital − ₹ 1,30,000 Drawings during the year ₹ 50,000
Closing Capital − ₹ 2,00,000 Profit made during the year ₹ 1,00,000

Q. Atul does not keep proper records of his business. He gives you the following information:

			(₹)
Opening Capital			2,00,000
Closing Capital			2,50,000
Drawings made during the year			60,000
Capital added during the year			75,000

Calculate profit or loss for the year.

Q. If a firm prefers Partners Capital A/c be shown at the amount introduced by the partners capital in firm then entries for salary, interest, drawings, interest on capital and drawings and profits are made in ____________.

Q. By 220 B.C. ___________ became independent and made Srikakulam his capital and started the Satavahana rule.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Accounting Treatment

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Journal Entries for Recording Goodwill

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon