Asked by Sylvanna Riazzo on Jun 03, 2024
Verified
Each partner has a separate capital and withdrawal account.
Capital Account
An account used to track the investments made into a company by its owners, plus the retained earnings of the business.
Withdrawal Account
An account used in partnership accounting to record the amounts drawn out of the business by the partners for personal use.
- Discern the crucial aspects involved in setting up and operating a partnership.
Verified Answer
IT
Ibrahim TounkaraJun 07, 2024
Final Answer :
True
Explanation :
In a partnership, each partner has a separate capital account to track their individual investment into the business and a separate withdrawal account to track any money they take out of the business.
Learning Objectives
- Discern the crucial aspects involved in setting up and operating a partnership.