Question

Give the word / term or phrase which can substitute each of the following statement.

The amount withdrawn by the partners from the business for their personal use.

Answer 1

Drawings

Explanation: Drawings are the amount withdrawn (in cash or in kind) by the partners from the business for their personal use. In case of fixed capital method, it is recorded in the Partners’ Current Account, while in case of fluctuating capital method, it is shown in the Partners’ Capital Account.