Drawings against the capital account of the partner reduce capital of the partner. This statement is...........

True False Depend on the situation None of these

True

Drawings against capital means the withdrawal by a partner out of his or her capital. Interest on capital is not allowed or paid by the firm on the amount of capital withdrawn. The amount withdrawn by a partner against his or her capital is debited to his or her capital account. It decreases the capital of the partner.