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Question : Partner's Drawings account is closed.

Option 1: By transfer to the credit side of the capital Account.

Option 2: By transfer to the credit side of the current account.

Option 3: either A or B

Option 4: By transfer to the debit side of the Capital or Current account.


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: By transfer to the debit side of the Capital or Current account.


Solution : Answer = By transfer to the debit side of the Capital or Current account .
Partner's drawings account is closed by transfer to the debit side of the capital account or current account.

Partner's capital / current A/C Dr
To Drawings A/C or Cash A/C.

In the case of permanent drawings, it will be recorded in the capital account and temporary Drawings will Be recorded in the current account.
Hence, the correct option is 4.

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