Drawings of partner against capital is debited to which account of partnership firm: |
Debited to drawings account of partner Debited to capital account of partner Both of these None of these |
Debited to capital account of partner |
Drawings against capital by a partner is permanent withdrawal of capital. So, it is debited to capital account of partner to show reduction of capital and it is also not considered for calculating interest on drawings. It is considered for calculating interest on capital. |