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What would be the journal entries for the following statements?
1- Drawings of $2500 by the owner to pay business electricity bill that was due.
2- Repayment of business loan of $1000 from owner’s personal account.1 Makes no sense. If you make drawings you are taking money for personal use. Paying business electricity cannot therefore be drawings.
2 Dr Business loan (the indebtedness to the lender dectrased)
Cr Capital (or drawings) (the indebtedness to the owner increases)
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