The entry to close the owner's drawing account would include a debit to the:
A)owner's drawing account and a credit to the Income Summary account.
B)owner's capital account and a credit to the owner's drawing account.
C)owner's drawing account and a credit to Cash.
D)Income Summary account and a credit to the owner's drawing account.

Question

Quizplus · Accepted Answer

The correct entry to close the owner's drawing account involves debiting the owner's capital account and crediting the owner's drawing account. This action transfers the amount withdrawn by the owner for personal use from the drawing account to the capital account, reducing the owner's equity in the business.

The Entry to Close the Owner's Drawing Account Would Include