Accouting help?

Which accounts would be affected in this transaction "The owner withdrew $200 cash for personal use"

Other answer:

DR: Drawings 200
CR: Cash 200
It depends on whether you are accounting for the owner or the owner's company. The word "cash" in the question should give you a hint. All you have to do is decide what the other account is. That requires some heavy thinking, or study that you forgot to do earlier.
Dan B:
The account from which the money came from would be credited (the cash was an asset) and the owner's equity would be debited (the owner's equity in the company would be reduced).
Re Vera:
You debit "do your own homework" for $200, and credit "self-discipline and education" for $200.

Leave a Reply

Your email address will not be published. Required fields are marked *