Maharashtra State BoardHSC Commerce 12th Board Exam
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Select the Most Appropriate Alternative from Those Given Below and Rewrite the Statement. - Book Keeping and Accountancy

MCQ

Select the most appropriate alternative from those given below and rewrite the statement.

The drawings of partners are transferred to __________________ account.

Options

  • trading

  • profit and loss

  • partner’s capital

  • balance sheet

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Solution

The drawings of partners are transferred to partner’s capital account.

Explanation: Drawings are the amount withdrawn by the partners from the business for their personal use. Such withdrawals from the business cause a decline in partners’ capital. Therefore, these are recorded on the debit side of Partner’s Capital Account.

Concept: The Indian Partnership Act 1932
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 1 Introduction to Partnership
Exercise | Q 12 | Page 14
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