If the owner of Pague Legal Services forgot to deduct a withdrawal from the balance per books,what entry would be necessary?
A)Debit Cash;credit Withdrawals
B)Debit Withdrawals;credit Cash
C)Customer collection taken by the bank
D)Debit cash;credit Revenue

Question

Quizplus · Accepted Answer

If the owner forgot to deduct a withdrawal from the balance per books, it means that the cash balance is overstated. To correct this, we need to decrease the cash balance and increase the withdrawals balance, which can be done by debiting Withdrawals and crediting Cash. Therefore, option B is the best choice. Options A and D are not relevant to this situation, and option C does not affect the cash balance or withdrawals account.

If the Owner of Pague Legal Services Forgot to Deduct