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Geoffrey brought $50,000 into his business at the start of the accounting period. During the year, he needed $5,000 for a personal emergency. He borrowed this money from the business’s accounts. Under
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Geoffrey brought $50,000 into his business at the start of the accounting period. During the year, he needed $5,000 for a personal emergency. He borrowed this money from the business’s accounts. Under which accounting heads will the business record these transactions?

Geoffrey’s business will credit $50,000 to the
account and debit $5,000 from the
account.

User Alex Kreimer
by
5.0k points

1 Answer

3 votes

Answer:

50,000 would be Capital and 5,000 would be drawings.

Step-by-step explanation:

User Carl Quirion
by
5.1k points
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