USA Accounting exam

[Rsdubberly]

In a homework assignment that I have, I am being asked to correct incorrect entries.
Question is as follows:
Owner withdrew money for personal reasons:
Dr. Misc. Expense. $600
Cr. Cash. $600


My question is what accts are effected by owners withdrawal of capital funds?

 

[Keyur Desai]

From the point of view of a business, owner's personal expenses are in the nature of "Drawings" i.e., reduction from capital.

Correct Entry :

Drawings (or Capital) A/c Dr. $600
To Cash A/c $600