- reduces both total assets as well as owner-s equity-Retained earningsCredit purchasesBank loansDrawings

Question

Toppr Admin · Accepted Answer

Any amount withdrawn by the owner for personal use from the business is considered as drawings- Drawings are actually a reduction on the owners capital as he withdrew some amount- Simultaneously- cash is going out from the firm- hence it reduces the total assets-

____________ reduces both total assets as well as owner's equity.
Retained earnings
Credit purchases
Bank loans
Drawings

Any amount withdrawn by the owner for personal use from the business is considered as drawings. Drawings are actually a reduction on the owners capital as he withdrew some amount. Simultaneously, cash is going out from the firm, hence it reduces the total assets.

____________ reduces both total assets as well as owner's equity.Retained earningsCredit purchasesBank loansDrawings

Any amount withdrawn by the owner for personal use from the business is considered as drawings. Drawings are actually a reduction on the owners capital as he withdrew some amount. Simultaneously, cash is going out from the firm, hence it reduces the total assets.

____________ reduces both total assets as well as owner's equity.
Retained earnings
Credit purchases
Bank loans
Drawings