O-LevelAccountingSources and recording of data7707/11 · Oct/Nov 2018 · Q181 Mark
The following entries appeared in a trader's ledger. Dr. drawings account Cr. $ $ purchases 200 Dr. purchases account Cr. $ $ drawings 200 Which transaction has taken place?
AGoods purchased for resale have been paid for from the owner's private bank account.
BThe owner has purchased goods for cash from the business.
CThe owner has taken goods for his own use which the business had purchased for resale.
DThe owner has taken cash out of the business for his own use.
✓ Correct answer
A: Goods purchased for resale have been paid for from the owner's private bank account.
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