Dina Kader withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:
A) Debit Income Summary and credit Cash for $35,000.
B) Debit Dina Kader, Withdrawals and credit Cash for $35,000.
C) Debit Income Summary and credit Dina Kader, Withdrawals for $35,000.
D) Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000.
E) Debit Dina Kader, Withdrawals and credit Dina Kader, Capital for $35,000.

Question

Quizplus · Accepted Answer

To close the withdrawals account, the correct entry is to debit the owner's capital account and credit the withdrawals account. This reflects the decrease in the owner's equity due to the withdrawals.

Dina Kader Withdrew a Total of $35,000 from Her Business