The proper journal entry to record a proprietor taking $500 cash from the business for personal use is:
A) $\begin{array} { | c | r | r | }
\hline \text { Cash } & 500 & \
\hline \text { Withdrawals } & & 500 \
\hline
\end{array}$
B) $\begin{array} { | c | r | r | }
\hline \text { Withdrawals } & 500 & \
\hline \text { Cash } & & 500 \
\hline
\end{array}$
C) $\begin{array} { | c | r | r | }
\hline \text { Salary expense } & 500 & \
\hline \text { Cash } & & 500 \
\hline
\end{array}$
D) $\begin{array} { | c | r | r | }
\hline \text { Loans payable } & 500 & \
\hline \text { Cash } & & 500 \
\hline
\end{array}$

Question

The proper journal entry to record a proprietor taking $500 cash from the business for personal use is:
A) $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 500 & \
\hline \text { Withdrawals } & & 500 \
\hline
\end{array}$
B) $\begin{array} { | c | r | r | } 
\hline \text { Withdrawals } & 500 & \
\hline \text { Cash } & & 500 \
\hline
\end{array}$
C) $\begin{array} { | c | r | r | } 
\hline \text { Salary expense } & 500 & \
\hline \text { Cash } & & 500 \
\hline
\end{array}$
D) $\begin{array} { | c | r | r | } 
\hline \text { Loans payable } & 500 & \
\hline \text { Cash } & & 500 \
\hline
\end{array}$

Quizplus · Accepted Answer

When a proprietor takes cash from the business for personal use, it is recorded as a withdrawal (or drawing), decreasing Cash (an asset) and increasing Withdrawals (an equity account).

The Proper Journal Entry to Record a Proprietor Taking $500 Cash 500 Withdrawals 500\begin{array} { | c | r | r | } \hline \text { Cash } & 500 & \\\hline \text { Withdrawals } & & 500 \\\hline\end{array} Cash Withdrawals ​500​500​​

The Proper Journal Entry to Record a Proprietor Taking $500 $\begin{array} { | c | r | r | } \hline \text { Cash } & 500 & \\\hline \text { Withdrawals } & & 500 \\\hline\end{array}$