Question

A cash withdrawal was made by the owner from the business for personal use.

Answer 1

These are Drawings.

when owner withdraw something from business its called drawings and when invest in the business its called capital...

Answer 2

A cash withdrawal was made by the owner from the business for personal use is known as Drawings.

Explanation:

• Any withdrawal made from the business that is of either cash or any asset for personal use is known as drawings.
• Drawings mean that the owner is taking away a part of the capital from the business for their personal use and that will fetch no profits to the business.
• Examples of drawings are withdrawal of cash, withdrawal of furniture, machinery, etc.,
• Withdrawal of cash and deposit of cash in the bank account of the business is not considered drawings because it is not for personal use.