Contributions and Withdrawals by Business Owners

Question 1

Owner contributed $1,000 cash into the business.

Answer 1

DR Cash in hand $1,000

CR Capital $1,000

Question 2

Owner contributed a personal cheque of $20,000 to the business as starting capital.

Answer 2

DR Cash at bank $20,000

CR Capital $20,000

Question 3

Owner paid for rental expense costing $3,500 using his personal cheque

Answer 3

DR Rental expenses $3,500

CR Capital $3,500

Question 4

Owner brought in his personal car worth $84,000 for use in the business.

Answer 4

DR Motor vehicle $84,000

CR Capital $84,000

Question 5

Owner paid for purchase of business goods worth $4,200 using his personal credit card.

Answer 5

DR Inventory $4,200

CR Capital $4,200

Question 6

Owner withdrew goods costing $200 for his own use.

Answer 6

DR Drawings $200

CR Inventory $200

Question 7

Owner withdrew $80 cash from the business cash register to buy food for his personal consumption.

Answer 7

DR Drawings $80

CR Cash in hand $80

Question 8

Owner issued a business cheque to pay for his son’s swimming lessons costing $150.

Answer 8

DR Drawings $150

CR Cash at bank $150

Question 9

Owner took home an office laptop worth $3,700 for her daughter to use in school.

Answer 9

DR Drawings $3,700

CR Office equipment $3,700

Question 10

Owner withdrew $500 from the business bank account via the ATM machine for his private use.

Answer 10

DR Drawings $500

CR Cash at bank $500