Which one of the following statements is correct? A sole trader's drawings appear in his or her accounts as:

Question

Quizplus · Accepted Answer

Drawings are the amounts taken out of the business by the owner for personal use and are not considered an expense of the business. Therefore, they are deducted from the capital balance in the statement of financial position, as they reduce the amount of money that the owner has invested in the business.

Which One of the Following Statements Is Correct? a Sole