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A withdrawal of cash made by the owner will be found on the: a. cash receipts journal b. cash...

Question:

A withdrawal of cash made by the owner will be found on the:

a. cash receipts journal

b. cash payments journal

c. general journal

d. purchase journal

Drawing Account:

Drawing Account is a temporary account that is being which is being cleared at year-end to be debited against a capital account. When recording a cash withdrawal transaction, we are going to debit the Drawing Account of the person and credit to Cash account. The said transaction will have an effect in the balance sheet since the two accounts involved are both Balance Sheet accounts.

Answer and Explanation:

b. cash payments journal

Cash payment journal records all cash disbursements including payments to suppliers or creditors, payment of expenses and personal withdrawal of the owner.


Learn more about this topic:

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How to Manage Cash Disbursements

from Finance 101: Principles of Finance

Chapter 18 / Lesson 4
2.9K

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