Another Question Go to Table of Contents 4b. Another Question Go to Table of Contents 4c. Expense accounts are used to record the cost of doing business. Another Question Go to Table of Contents 5a. The balance in the Withdrawals account represents what the owner has taken out of the business.
Capital is what the business owes the owner.
Another Question Go to Table of Contents 5b. The owner taking assets out of the business decreases what the business owes the owner. Another Question Go to Table of Contents 5c. The Withdrawals account reflects what the owner took out of the business for personal use. This has to have some effect.