The owner of Wolverines R Us paid his personal MasterCard bill using a company cheque. The correct entry to record the transaction is
A) credit Cash; debit Capital.
B) credit Cash; debit Supplies Expense.
C) credit Cash; debit Withdrawals.
D) credit Cash; debit Accounts Receivable.

Question

Quizplus · Accepted Answer

The owner paying his personal MasterCard bill using a company cheque is an example of a withdrawal, as it is the owner taking money out of the business for personal use. Therefore, the correct entry to record the transaction is to credit Cash (as money is leaving the business) and debit Withdrawals (as the owner is taking the money for personal use).

The Owner of Wolverines R Us Paid His Personal MasterCard