Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, for personal use?
A) debit Sally Anderson, Capital; credit Cash
B) debit Sally Anderson, Drawing; credit Cash
C) debit Salaries Expense; credit Cash
D) debit Salaries Expense; credit Salaries Payable

Question

Quizplus · Accepted Answer

When an owner of a proprietorship withdraws cash for personal use, it is recorded as a debit to the Drawing account (which represents withdrawals by the owner) and a credit to the Cash account. Choice A is not correct because the Capital account represents the owner's investment in the business and should not be debited for personal withdrawals. Choice C is not correct because Salaries Expense is an expense account used to record salaries paid to employees, not personal withdrawals by the owner. Choice D is not correct because Salaries Payable is a liability account used to record amounts owed to employees, not personal withdrawals by the owner.

Which of the Following Entries Records the Withdrawal of Cash