Chuck, the owner of Computer Sales Co., paid his personal VISA bill using a company cheque. The correct entry to record the transaction is
A) credit Cash, debit Withdrawals.
B) credit Cash, debit Supplies Expense.
C) credit Cash, debit Capital.
D) credit Cash, debit Accounts Receivable.

Question

Quizplus · Accepted Answer

When the owner pays their personal VISA bill using a company cheque, the entry should credit Cash (to reflect the outflow of funds) and debit Withdrawals (to reflect the personal expense of the owner).

Chuck, the Owner of Computer Sales Co