Name the account which is debited when the proprietor uses business money for domestic use.

Capital account

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

Cash account

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

Drawings account

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

Goods account

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

Open in App

Solution

The correct option is C Drawings account
Business entity concept of accounting says that business and the owner are treated two separate entity.
Hence anything contributed by owner considered liability for the business. On the same line, if anything withdrawn by the proprietor for personal use is called as drawings.

Accounting entry will be as under:

Drawing A/c Dr.
To Cash/Bank A/c

Suggest Corrections

Similar questions

Give one word, phrase or term for the following

1. Business Assets which cannot be seen, touched but can be sold for cash.
2. Name the account which is debited when the proprietor uses business money for domestic use.
3. Proprietor’s personal account
4. The amount paid to owner/ author of book copyright for the use of book.
5. Right hand side of an account.
6. Accounts other than the impersonal account.
7. Accounts of properties
8. Name the account which is debited when dog is purchased for business security.
9. Left hand side of an account.
10. Name the account which is debited for payment of import duty.

Q. When cash is brought into the business as capital, account is debited.

When cash is brought into the business as capital, which account is debited?

Q. account is debited when the incoming partner brings money in the business.

Q. When partners chose to take the money invested in the business entirely, we debit account and credit account.

Join BYJU'S Learning Program