Where fixed capitals are maintained, partners' drawings are transferred to the
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Correct Answer: Option B
Explanation:
Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital . On the other hand, expenses and withdrawals decrease capital, hence they normally have debit balances.
Therefore partners drawings would have a debit balance in the capital account
Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital . On the other hand, expenses and withdrawals decrease capital, hence they normally have debit balances.
Therefore partners drawings would have a debit balance in the capital account