The owner withdraws cash from the business for personal use. Which of the following is true?

Assets - Increase
Liabilities - No effect
Capital - Decrease

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

Assets - Decrease
Liabilities - Increase
Capital - No effect

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

Assets - No effect
Liabilities - Decrease
Capital - Increase

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

Assets - Decrease
Liabilities - No effect
Capital - Decrease

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

Open in App

Solution

The correct option is D
Assets - Decrease
Liabilities - No effect
Capital - Decrease

On one side, the assets of the business (cash) shall decrease along with an equal decrease in capital on the other.

Suggest Corrections

Similar questions

The amount which the owner withdraw from business for personal use is known as ______

Suppose A withdraw Rs 10,000 in cash from business for personal use. Which account shall be credited in this case?

What term is used as the amount charged from the owner for withdrawing money from the business?

Join BYJU'S Learning Program