Chapter 12, Problem 6QC

To determine

Withdrawals from Partners’ Capital:

A withdrawal, also known as drawings, of partners’ capital is a frequent occurrence in partnership business scenarios. It is done by partners when they need to withdraw funds from the business, transfer business profits to personal accounts etc.

Drawings are expense accounts and the normal method of presentation in the financial statements, is to reduce the balance of the partner withdrawals, from the balance of partner’s equity, and represent the same as a deduction.

Effect of Partner withdrawals on Partners capital