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Question

___________________ is not a business transaction.
  1. Bought furniture of Rs.10,000 to used in business
  2. Paid for salaries of employees Rs.5,000
  3. Paid sons fees from his personal bank account Rs.20,000
  4. Paid sons fees from the business Rs.2,000

A
Paid sons fees from the business Rs.2,000
B
Bought furniture of Rs.10,000 to used in business
C
Paid sons fees from his personal bank account Rs.20,000
D
Paid for salaries of employees Rs.5,000
Solution
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When son's fees is paid from his personal bank account, this transaction will not be a business transaction because it does not affect any of the business account. On the other hand,when a fee is paid from business, it will be recorded as drawing of the proprietor.

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