Post Utme Greenfield University 2023 Accounting Question 2

Practice objective / multiple choice question 2 from the 2023 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2023 Accounting Objective / Multiple Choice
Question 2 POST_UTME_GREENFIELD_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the single entry system of accounting. The company's sole proprietor, John, has a capital account of ₦100,000. During the year, John withdrew ₦20,000 from the business for personal use. What is the correct journal entry to record John's withdrawal?

Answer Options

A. Debit Capital Account ₦20,000, Credit Drawings ₦20,000
Correct Answer B. Debit Drawings ₦20,000, Credit Capital Account ₦20,000
C. Debit Capital Account ₦20,000, Credit Cash ₦20,000
D. Debit Cash ₦20,000, Credit Capital Account ₦20,000
Correct Answer
B
Correct Option:
Debit Drawings ₦20,000, Credit Capital Account ₦20,000

About This Question

This is Post Utme Greenfield University 2023 Accounting Question 2. It is one of the objective questions from the 2023 Post Utme Greenfield University Accounting examination.

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