Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 8 - No. 21)
How are drawings typically treated at the end of an accounting period?
They are added to the retained earnings.
They are closed by debiting them.
They are transferred to the partners' current accounts.
They are transferred to the profit or loss account.
Explanation
Drawings are closed by transferring them to the current accounts.
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