Withdrawal of cash from business should be credited to Capital Account.

True

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False

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Solution

The correct option is B False
The above statement is false.
Withdrawl of cash from business is known as drawing and it is credited to cash A/c.

Drawing A/c Dr.
To Cash A/c.
( Being cash withdrawn for personal use)

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Similar questions

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

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