2
Question
Select the most appropriate alternative from those given below:
Drawing account is closed by transferring the balance to the ______ account.
Select the most appropriate alternative from those given below:
Drawing account is closed by transferring the balance to the ______ account.
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Solution
The correct option is D Capital
Drawing means the goods or money withdrawn from business concern for personal use. It has two aspects : 1. It reduces the assets of business. 2. It reduces capital of partner. So it is closed by deducting from capital account.
Drawing means the goods or money withdrawn from business concern for personal use. It has two aspects : 1. It reduces the assets of business. 2. It reduces capital of partner. So it is closed by deducting from capital account.
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