If the owner of Que 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)Debit Revenue; credit Cash
D)Debit cash; credit Revenue

Question

Quizplus · Accepted Answer

If the owner forgot to deduct a withdrawal, it means that the cash balance is overstated in the books. Therefore, we need to decrease the cash balance and increase the withdrawals account to reflect the correct amount of cash taken out by the owner. This can be done by debiting the withdrawals account and crediting the cash account. Therefore, the correct entry is: Debit Withdrawals; credit Cash.

If the Owner of Que Legal Services Forgot to Deduct