Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 16)
In the context of a partnership, what is meant by 'drawings'?
The profit share a partner is entitled to.
Money or assets withdrawn by a partner for personal use.
The total capital contributed by all partners.
The partnership's revenue from sales.
Explanation
Drawings represent withdrawals made by partners for their personal use, separate from their investment in the business.
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