Drawings are shown as _____

Addition to capital

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Deduction from capital

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Expense

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Both B & C

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Solution

The correct option is B
Deduction from capital

Drawings are shown as a deduction from capital.

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Q. A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018 they earned a net profit of ₹ 50,000. The terms of partnership are:
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Drawings are shown as _____

The correct option is B Deduction from capital Drawings are shown as a deduction from capital.

The correct option is B
Deduction from capital

Drawings are shown as a deduction from capital.