Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 18 - No. 26)
What is the result of the following: Debit Purchases, Credit Drawings?
Goods taken for personal use by the owner.
Goods returned to supplier.
Goods sold on credit.
Goods taken for business use.
Explanation
The owner took goods from purchases (inventory) for personal use.
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