What is the journal entry for a partner withdrawing cash from the partnership?

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Question: What is the journal entry for a partner withdrawing cash from the partnership?

Options:

Correct Answer: Debit Drawings Account, Credit Cash

Solution:

The correct entry is to debit the Drawings Account and credit Cash to record the withdrawal.

What is the journal entry for a partner withdrawing cash from the partnership?

What is the journal entry for a partner withdrawing cash from the partnership?

Step 1: Identify the partner who is withdrawing cash from the partnership.
Step 2: Determine the amount of cash that the partner is withdrawing.
Step 3: Open the Drawings Account for the partner if it is not already created.
Step 4: Record the withdrawal by debiting the Drawings Account with the amount withdrawn. This shows that the partner's equity in the partnership is decreasing.
Step 5: Credit the Cash account with the same amount. This shows that cash is leaving the partnership.

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