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Question
State True or False.
Drawings made during the year decreases the profit under single entry system.
Options
True
False
MCQ
True or False
Solution
False
Explanation: Under single-entry system, drawings made during the year are added to the capital at the end of the year in order to arrive at the profit figure. Hence, drawings made during the year increase the profit under this system.
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Effects of Adjustments-Drawings
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