Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

John withdrew goods from the business for his own personal use. They had cost $125$, and $20$ had been paid to deliver them to the business premises. How was this entered in John’s books of account?

  • ADebit: drawings $145$; Credit: purchases $125$, carriage inwards $20$
  • BDebit: drawings $145$; Credit: purchases $125$, carriage outwards $20$
  • CDebit: purchases $125$, carriage inwards $20$; Credit: drawings $145$
  • DDebit: purchases $125$, carriage outwards $20$; Credit: drawings $145$

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