The journal entry for goods withdrawn by the proprietor for personal use is: MCQ with Answer and Explanation

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The journal entry for goods withdrawn by the proprietor for personal use is:

A. Drawings A/c Dr. To Sales A/c

B. Capital A/c Dr. To Purchases A/c

C. Drawings A/c Dr. To Purchases A/c

D. Purchases A/c Dr. To Drawings A/c

Answer: Option C

Solution (By JKSSB Mock Tests)

Goods taken for personal use reduce drawings and reduce purchases (or stock). Correct entry: Drawings A/c Dr. To Purchases A/c.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The financial statement that shows profitability for a period is:

A. Profit and Loss Account

B. Funds Flow Statement

C. Balance Sheet

D. Cash Flow Statement

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Correct Answer: Option A

Explanation:
Profit and Loss Account shows the net profit or loss over a period.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Which of the following is a 'Liability of a Partner' in a general partnership?

A. Unlimited

B. Only for his own acts

C. Limited to firm's assets

D. Limited to his capital

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Correct Answer: Option A

Explanation:
In a general partnership, all partners have unlimited joint and several liability.

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Question #3

What is the correct journal entry for interest on capital provided to the owner?

A. Debit Capital, Credit Interest on Capital

B. Debit Interest on Capital, Credit Cash

C. Debit Interest on Capital, Credit Capital

D. Debit P&L Account, Credit Cash

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Correct Answer: Option C

Explanation:
Interest on capital is an expense (Debit), and it increases the owner's capital account (Credit).

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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