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Capital of a business decreases if there is an increase in :?

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Question added by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group
Date Posted: 2015/07/02
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option A is the right answer.

Haytham Ahmed
by Haytham Ahmed , باحث قانونى , Prosecution GENERAL

 A) Drawings It is the correct answer .

ayaz sattar
by ayaz sattar , accounts and exports controller , NAS TRADING & EXPORTS

Drawings will decrease the capital from business .

mehfooz alam khan habib khan
by mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Yes option A is right answer, because Drawing always deduct from capital.

OLANREWAJU AWOJOBI
by OLANREWAJU AWOJOBI , Finance Officer , SEAP MICROFINANCE BANK

A. DRAWINGS..  BECAUSE THIS DEALS WITH WITHDRAWAL OF CASH FOR PERSONAL USE

Michael Lagunday
by Michael Lagunday , Accountant , Dubai Camel Racing Club

My answer is A. Drawings.

 

Increased in all of the above choices expect for drawings will increase capital. Income, gains and fresh capital injected in the business have a direct relationship in owner's equity account.

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

 Correct Answer is A) Drawings will increase against which capital of a business decreases

Maria Cecilia Arsenal
by Maria Cecilia Arsenal , Bookkeeper , Archor Lending Services, Inc.

A. Drawings. Capital decreases when withdrawals increases.

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

answer A :

 

Drawings is the best answer

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G M Masudur Rahman
by G M Masudur Rahman , Manager Accounts & Finance , Noman Group of Industries

It will be drawing, decreasing capital 

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