In order to close the owner's drawings 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

Closing the owner's drawings account involves transferring the balance of the account to the owner's capital account. Since the drawings account is a debit account, it should be credited when closing it. The corresponding entry should be a debit to the owner's capital account. Therefore, the correct option is D.

In Order to Close the Owner's Drawings Account the