The last step in the closing process is to credit the Drawings account and debit the Capital account.

Name: The last step in the closing process is to credit the Drawings account and debit the Capital account.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

This statement is true. The Drawings account represents withdrawals made by the owner and is closed at the end of the accounting period. The Capital account represents the owner's equity in the business and is credited for the amount of the Drawing.

The Last Step in the Closing Process Is to Credit