Question

Which account will be debited if proprietor pays 5,000 as life insurance premium from business cash? (a) Cash A/C (b) Bank A/C (c) Insurance A/C (d) Drawings A/C






Drawing A/C
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Answer 1

Answer :

Drawing A/c will be debited.

Explanation :

Drawing → When a partner takes business assets for personal use then it's called drawing. In this case, the proprietor pays 5000 as a life insurance premium from business cash that's why it's debited to drawing A/c.