Commerce Exam > Commerce Questions > A withdrawal of cash from business by the pro...
Start Learning for Free
A withdrawal of cash from business by the proprietor should be credited to:
- a)Drawing account
- b)Capital account
- c)Cash account
- d)Purchase account
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A withdrawal of cash from business by the proprietor should be credite...
Withdrawal of Cash from Business by Proprietor
When a proprietor withdraws cash from the business, it is considered as his personal expense and reduces the amount of cash available in the business. The transaction needs to be recorded to ensure proper accounting of the business transactions.
Account to be Credited
The cash account needs to be credited when the proprietor withdraws cash from the business. This is because cash is being reduced from the business and the cash account needs to be reduced accordingly.
Option C - Cash Account
The correct option is 'C' which states that the withdrawal of cash from the business by the proprietor should be credited to the cash account. This is because cash is being reduced from the business and the cash account needs to be reduced accordingly.
Importance of Recording Transactions
Recording transactions is important for maintaining accurate financial records of the business. It helps in monitoring the financial health of the business and making informed decisions. It also helps in preparing financial statements and tax returns.
Conclusion
In conclusion, when a proprietor withdraws cash from the business, it needs to be recorded by crediting the cash account. This ensures proper accounting of the transaction and helps in maintaining accurate financial records of the business.
When a proprietor withdraws cash from the business, it is considered as his personal expense and reduces the amount of cash available in the business. The transaction needs to be recorded to ensure proper accounting of the business transactions.
Account to be Credited
The cash account needs to be credited when the proprietor withdraws cash from the business. This is because cash is being reduced from the business and the cash account needs to be reduced accordingly.
Option C - Cash Account
The correct option is 'C' which states that the withdrawal of cash from the business by the proprietor should be credited to the cash account. This is because cash is being reduced from the business and the cash account needs to be reduced accordingly.
Importance of Recording Transactions
Recording transactions is important for maintaining accurate financial records of the business. It helps in monitoring the financial health of the business and making informed decisions. It also helps in preparing financial statements and tax returns.
Conclusion
In conclusion, when a proprietor withdraws cash from the business, it needs to be recorded by crediting the cash account. This ensures proper accounting of the transaction and helps in maintaining accurate financial records of the business.
Free Test
FREE
| Start Free Test |
Community Answer
A withdrawal of cash from business by the proprietor should be credite...
Withdrawal of cash by proprietor should be debited to drawing account in the books of the business. Same amount should be credited by the proprietor in cash account.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer?
Question Description
A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer?.
A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer?.
Solutions for A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A withdrawal of cash from business by the proprietor should be credited to:a)Drawing accountb)Capital accountc)Cash accountd)Purchase accountCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup