Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 13 - No. 48)
What is the impact of a partner's drawings on their capital account?
It increases the capital account.
It has no effect on the capital account.
It decreases the capital account.
It increases the partner's share of profits.
Explanation
Drawings represent the partner's withdrawals from the business and reduce their capital account.
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