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In a sole proprietorship the owner withdraw cash from the business.
For example: The owner withdraw $500 for personal use. What will be the correct answer:
a)
| Owners Capital | $500 | |
| Cash | | $500 |
b)
| Owners Withdrawal | $500 | |
| Cash | | $500 |
I want to know what is the correct journal entry because in some textbooks they use the a) journal entry and others use the b) journal entry.
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