Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 42)
Which of the following is an example of a transaction that would *increase* the balance in the drawings account?
The owner contributes cash to the business.
The business pays rent.
The owner withdraws cash for personal use.
The business sells goods on credit.
Explanation
Drawings increase when the owner takes assets (cash or goods) out of the business for personal use.
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