一个关于debit & credit的问题，还望高手赐教！ business, required, credit, record, Thank

masha

What journal entry is required to record goods taken from inventory by the owner of a business?

 

A. Dr Drawings   Cr Purchases

B. Dr Sales        Cr  Drawings

C. Dr Drawings   Cr Inventory

 

The answer is A, but I don't know why C is wrong? Could you help me?

 

Thank you very much in advance!

threefires

Goods taken by owner is deemed as the company buy goods and then give it to the owner, thus the purchase accountant is CR and transfer to drawings.

masha

Hi, thanks very much for your kindly reply!

 

But may I ask why can't credit inventory account? Inventory decrease -> assets decrease -> credit inventory account.

 

Appreciate for your help!

 

Best regards,