alleryDrawings of ₹15,000 by proprietor are:
ADebited to P&L Account
BDeducted from capital
CTreated as expense item
DShown as a liability
Answer & Solution
Correct answer: B. Deducted from capital
1. Drawings are personal withdrawals by the proprietor.
2. They reduce capital, not P&L.
3. Closing capital = Opening + Profit − Drawings.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.5 capital section_
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