Which of the following correctly describes what partner's capital accounts in a partnership reflect?

All capital transactions, including investments, profits, and withdrawals

Partners' capital accounts in a partnership serve as individual records for each partner, documenting their capital transactions throughout the partnership's existence. These accounts reflect not only the initial investment made by each partner but also any subsequent capital contributions, their share of profits allocated, and any withdrawals made by the partners. When a partner initially invests capital into the partnership, it is recorded in their capital account. As the partnership operates and generates profits, each partner's share of the profits is allocated based on the agreed profit-sharing ratio or the terms specified in the partnership agreement. This allocation of profits is also reflected in the partners' capital accounts. Additionally, any withdrawals made by partners for personal use or other purposes are recorded in their capital accounts as reductions in their capital balances. These withdrawals could be in the form of cash or assets taken out of the business by the partners. Therefore, partners' capital accounts provide a comprehensive overview of all capital-related transactions, including investments, profits allocated, and withdrawals, and help track the partners' individual interests in the partnership.