If Odukoya takes money out of business bank account for his own private use, the effect of the transaction is?
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Correct Answer: Option C
Explanation:
Drawings is the withdrawals from a business by a business owner for his personal use. It represents a reduction of owners'Â equity (capital)Â in the business.Â
 Drawings account have a debit balance which increases assets (remember in the balance sheet, assets are recorded on the debit side of the account while liabilities have a credit ballance). Hence drawings would reduce owners capital and increase the asset balance.
Drawings is the withdrawals from a business by a business owner for his personal use. It represents a reduction of owners'Â equity (capital)Â in the business.Â
 Drawings account have a debit balance which increases assets (remember in the balance sheet, assets are recorded on the debit side of the account while liabilities have a credit ballance). Hence drawings would reduce owners capital and increase the asset balance.