Partner’s Drawing Account is closed
Partner’s Drawing Account is closed
a) by transfer to credit side of the capital account
b) by transfer to credit of current account
c) either a) or b)
d) by transfer to debit side of Capital or Current Account
Anurag Pathak Changed status to publish April 9, 2023
Ans – d)
Explanation:-
When Capitals are Fluctuating:-
Partner’s Drawings reduce the capital. Thus Partner’s Drawings account is closed by transferring to the debit side of the Capital account.
When Capitals are Fixed:-
In the case of fixed capital, the partner’s drawings account is closed by transferring to the debit side of the current account.
Anurag Pathak Changed status to publish April 4, 2023
