JAMB Accounting 2009 Objective — Question 6

Question 6 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.

6. If Odukoya takes money out of the business bank account for his own private use, the effect of the transaction is

A. increase in assets and increase in capital
B. increase in assets and decrease in capital
C. decrease in capital and increase in assets
D. decrease in capital and decrease in assetsCorrect

Explanation

Withdrawal of money for private use reduces both the capital and the asset (cash).

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