Accounting JAMB

When stock is withdrawn for personal use; the accounting entries is to debit

A. stock account credit drawings
B. drawing account, credit stock account
C. personal account credit cash account
D. cash account, credit personal account

Correct Answer:

Option B – drawing account, credit stock account

Explanation

Journal Entry will be to debit drawings and credit-related stocks or Sales account on a cost basis for having used goods for personal use by the owner.

Whenever the proprietor withdraws any sort of cash, goods or asset for his or her personal, private or domestic it is considered as drawings.

Sunday

Share
Published by
Sunday
Tags: Accounting

Recent Posts

List of Universities Offering Veterinary Medicine in Nigeria

Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis, and treatment…

3 months ago

List of Universities Offering Anthropology in Nigeria

Anthropology is the scientific study of human beings and their cultures. It encompasses a wide…

3 months ago

List of Universities Offering Sociology in Nigeria

Sociology is the scientific study of human society, culture, and behavior. It examines the social…

3 months ago

List of Universities Offering Social Work in Nigeria

Social Work is a profession dedicated to helping individuals, families, and communities to cope with…

3 months ago

List of Universities Offering Religious Studies in Nigeria

Religious studies is an academic discipline that explores the beliefs, practices, and history of various…

3 months ago

List of Universities Offering Public Administration in Nigeria

Public administration is the field of study and practice that focuses on the organization and…

3 months ago