When stock is withdrawn for personal use, the accounting entries is to debit
FINANCIAL
JAMB 2016
When stock is withdrawn for personal use, the accounting entries is to debit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: B. drawing account, credit stock account
Explanation
Journal Entry will be to debit drawings & credit related stocks or Sales account on 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.
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