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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


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 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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