In an owner's drawing transaction, which account is debited?

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Multiple Choice

In an owner's drawing transaction, which account is debited?

Explanation:
When an owner withdraws cash for personal use, the business records a draw against the owner's equity. The Drawings (Taylor Gordon Drawing) account is debited to show the increase in drawings, while the cash asset is credited to reflect the cash leaving the business. This reflects that the owner’s equity is reduced by the withdrawal, and the company’s cash decreases. So the account debited in this transaction is the owner’s Drawing account. The cash would be credited, while Accounts Payable or Service Revenue are not involved in a typical drawing.

When an owner withdraws cash for personal use, the business records a draw against the owner's equity. The Drawings (Taylor Gordon Drawing) account is debited to show the increase in drawings, while the cash asset is credited to reflect the cash leaving the business. This reflects that the owner’s equity is reduced by the withdrawal, and the company’s cash decreases.

So the account debited in this transaction is the owner’s Drawing account. The cash would be credited, while Accounts Payable or Service Revenue are not involved in a typical drawing.

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