When a proprietor withdraw cash from the firm for self use, this is treated as ______.

Loss

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Drawing

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Depreciation

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Expenses

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Solution

The correct option is B Drawing
When the owner of the business withdraws some amount from the business for personal use then it is known as drawings.
Capital is the amount that is invested by the owner in the business.
Drawings are the decrease in the Capital of the business.

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Withdrawals of cash from a bank by the proprietor for office use is termed as drawings. Is this statement correct?

Withdrawals of cash by a proprietor for personal use shall be debited to ___.

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