Question

goods taken by a proprietor for personal use are deducted from __ in the balance sheet ​

Answer 1

Answer:

goods taken by a proprietor for personal use are deducted from _purchases account in the balance sheet

Answer 2

ANSWER :

Goods taken by a proprietor for personal use are deducted from Capital at the Liabilities side in the balance sheet.

• Goods taken by a proprietor for personal use are treated as Drawings.

• Drawings is deducted from the Capital in the Balance Sheet.

• Capital is the Liability of the business. Hence, Drawings is deducted from the Capital at the Liabilities side in the Balance Sheet.

MORE INFORMATION :

• Amount of cash or value of goods taken by the proprietor or withdrawn by the owner from the business for the personal use or any private purpose is called Drawings.

• The amount which the business firm is required to pay in future is known as Liability. it is the future monetary obligation of the enterprise.

• The owner or proprietor of the business invests his money or assets in the business for carrying on the business which is known as Capital.

• Balance Sheet is a statement as on or at a particular date which shows all the assets and liabilities of the business enterprise.

• Balance Sheet is known as the position statement of the business as it shown the financial position of the business.