In order to close the owner's drawing account, the
A) income summary account should be debited.
B) income summary account should be credited.
C) owner's capital account should be credited.
D) owner's capital account should be debited.

Question

Quizplus · Accepted Answer

When closing the owner's drawing account, the withdrawal of personal funds is transferred to the Owner's Equity (Capital) account by debiting Drawing and crediting Capital. This means that the balance of the drawing account is taken away, reducing the capital account. Therefore, the owner's capital account should be debited.

In Order to Close the Owner's Drawing Account, the