If the owner of Kelly Legal Services forgot to deduct a withdrawal from the balance per books, what entry would be necessary?
A) Debit Cash; credit Withdrawals
B) Debit Withdrawals; credit Cash
C) Debit Revenue; credit Cash
D) Debit cash; credit Revenue

Question

Quizplus · Accepted Answer

If the owner of Kelly Legal Services forgot to deduct a withdrawal from the balance per books, the necessary entry would be to debit Withdrawals and credit Cash to adjust the books. Therefore, option B is the correct choice. Option A would be used if the owner had taken money for personal use from the business, which is not the case here. Option C would be used if the business had received cash for services provided, which is not the scenario given in the question. Option D relates to a revenue transaction, but the scenario is about a withdrawal that was not deducted from the balance per books.

If the Owner of Kelly Legal Services Forgot to Deduct