Accountancy MCQs
Topic Notes: Accountancy
General Description
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
71
Which of the following accounts typically carries a debit balance?
Answer:
Drawings
A drawings account represents the withdrawal of cash or assets from the business by the owner for personal use. Since drawings reduce the owner's equity in the business, they are recorded as a debit to the drawings account, which is a contra-equity account. Therefore, it typically maintains a debit balance.