Question : On which side Partner's drawings out of Capital will be recorded, when their capitals are fixed?
Option 1: Debit side of Capital A/c
Option 2: Credit side of Capital A/c
Option 3: Debit side of Current A/c
Option 4: Credit side of Current A/c
Answer (1)
25th Jan, 2024
Correct Answer: Debit side of Capital A/c
Solution : Partner's drawings reduce the partner's capital, so it is to be debited to the partner's capital account. Hence, the correct option is 1.
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