The withdrawal of cash for personal use by the owners of a business requires a ________ to the drawings account and a ____________ to the cash account.
A) debit; debit
B) debit; credit
C) credit; credit
D) credit; debit

Question

Quizplus · Accepted Answer

The correct answer is B) debit to the drawings account and a credit to the cash account. When owners withdraw cash for personal use, the drawings account (which represents amounts taken out of the business by the owners) is increased with a debit, and the cash account is decreased with a credit.

The Withdrawal of Cash for Personal Use by the Owners