Question

Mukesh, a businessman, had paid the house rent where he lives
from the business. Is this a business transaction? Give reason,​

Answer 1

Explanation:

Yes it is a transaction

here Drawing a/c Dr

to Cash

Answer 2

Yes , this transaction is considered as business transaction.

Explanation:

Business transactions are those transactions which can be measured in money terms and relates to business. In this situation, the house rent is paid from the cash of business, so this transaction can be measured in monetary terms and  business cash is being affected , so this transaction is a business transaction.  

In this transaction two accounts are affected,  which can be shown as follows :

Drawings Account        Dr

    To Cash Account  

1. Drawings account is account for withdrawal by owner for his personal use . It is capital account and if it has debit balance it will reduce the owner's equity.

2. Cash account is the asset of the business and it is  real account. It is credited when it goes out of the business.