Drawings made by the proprietor increases his capital.

True

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False

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Solution

The correct option is B False
Capital is the amount which is invested by the owner into the business.
The amount which is withdrawn by the proprietor from the business for the personal use is known as drawing.
Thus, drawings is the decrease in the Capital of the business.
Therefore, the above statement is false.

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Similar questions

Q. Drawings made by the businessman increases his capital.

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