The drawings account has a normal balance of $30 000. The correct entry to close this account is:
A) DR Profit or loss summary account $30 000; CR Drawings $30 000
B) DR Owner's capital account $30 000; CR Drawings $30 000
C) DR Drawings $30 000; CR Bank $30 000
D) DR Bank $30 000; CR Drawings $30 000

Question

Quizplus · Accepted Answer

The correct entry to close the drawings account involves debiting the owner's capital account and crediting the drawings account. This reflects the reduction in the owner's equity due to drawings.

The Drawings Account Has a Normal Balance of $30 000