When the owner takes cash out of the business for personal use, which account is increased by a debit entry?

Choose the correct answer

Explanation

The Drawings account is debited when the owner withdraws cash for personal use, reflecting a reduction in owner's equity. Cash is credited because the business's cash decreases. Other accounts like Capital, Inventory, or 'No Account' are not affected by such withdrawals.

When the owner takes cash out of the business for pe… — Accounting Mcqs | PakQuizHub