Waec Model Questions Vol1 2019 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 22 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

A sole trader withdrew ₦45,000 cash from the business for personal use. Record the journal entry for this transaction and state its effect on the accounting equation.

Answer Options

A. Debit Drawings ₦45,000; Credit Cash ₦45,000. Assets ↓ ₦45,000, Owner's equity ↓ ₦45,000 (via Capital).
B. Debit Drawings ₦45,000; Credit Cash ₦45,000. Assets ↓ ₦45,000, Owner's equity ↑ ₦45,000 (via Drawings).
Correct Answer C. Debit Drawings ₦45,000; Credit Cash ₦45,000. Assets ↓ ₦45,000, Owner's equity ↓ ₦45,000 (via Drawings).
D. Debit Cash ₦45,000; Credit Drawings ₦45,000. Assets ↑ ₦45,000, Owner's equity ↓ ₦45,000 (via Drawings).
Correct Answer
C
Correct Option:
Debit Drawings ₦45,000; Credit Cash ₦45,000. Assets ↓ ₦45,000, Owner's equity ↓ ₦45,000 (via Drawings).

About This Question

This is Waec Model Questions Vol1 2019 Financial Accounting Question 22. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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