Question

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.

Answer 1

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

Step-by-step explanation: