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23 August, 01:22

Libby is the sole proprietor of a travel agency. During the year, she withdrew $3,750 from her business for her personal use. How will the business account for this withdrawal? A. debit the distribution account B. credit the drawings account C. debit the capital account D. credit the capital account E. credit the profit account

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Answers (2)
  1. 23 August, 01:27
    0
    Im guessing C because the other ones are not well worded.
  2. 23 August, 01:32
    0
    C. debit the capital account

    Explanation:

    Libby is the sole proprietor of a travel agency. During the year, she withdrew $3,750 from her business for her personal use. How will the business account for this withdrawal? A. debit the distribution account B. credit the drawings account C. debit the capital account D. credit the capital account E. credit the profit account

    A sole proprietor has certain advantages which includes having access to the funds and having an oversight of the business. If she withdraws the sum of $3,750 for her personal use, we can say that is a debiot from her capital account. If she invest that amount into the business, that is a credit to her capital account.

    Capital is the fund or resources used to start a business.
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Home » Business » Libby is the sole proprietor of a travel agency. During the year, she withdrew $3,750 from her business for her personal use. How will the business account for this withdrawal? A. debit the distribution account B. credit the drawings account C.
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