Question

HELP PLS

ACCOUNTING
If the owner of a company withdrew $200 during a period, the closing entry
for the Owner, Withdrawals account would show a ___.

O A. $200 credit to Income Summary
O B. $200 debit to Owner, Withdrawals
C. $200 credit to Owner, Capital
O D. $200 debit to Owner, Capital

Answer 1

D)

Explanation:

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Answer 2

O D. $200 debit to Owner, Capital

Explanation:

The above is the right way which would appear on the statement of account of the company owner. This is because, the $200 was actually a money taken by the owner hence it being a debit from the account (given to the owner). For the fact that it is cash amount, it would be show capital.