The entry to close the Withdrawals account is
A)debit owner's Capital and credit Withdrawals.
B)debit Withdrawals and credit owner's Capital.
C)debit Income Summary and credit Withdrawals.
D)debit Withdrawals and credit Income Summary.

Question

Quizplus · Accepted Answer

The Withdrawals account is a temporary account that is closed at the end of the accounting period. The closing entry for the Withdrawals account is to debit the owner's Capital account and credit the Withdrawals account. This entry reduces the owner's Capital account by the amount of the withdrawals and closes the Withdrawals account.

The Entry to Close the Withdrawals Account Is