When a withdrawal is made, the Owner's Withdrawals account is debited and Cash is credited.

Question

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This transaction follows the basic accounting equation and the rules of double-entry accounting, where every transaction involves at least two accounts: one account is debited and another account is credited. When an owner makes a withdrawal, their withdrawals account is debited to decrease their equity in the business, and cash is credited to reflect the decrease in the company's cash balance.

When a Withdrawal Is Made, the Owner's Withdrawals Account Is