When a partner withdraws cash from the partnership, which account is debited?

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Question: When a partner withdraws cash from the partnership, which account is debited?

Options:

Correct Answer: Partner\'s Drawings Account

Solution:

The Partner\'s Drawings Account is debited when a partner withdraws cash from the partnership.

When a partner withdraws cash from the partnership, which account is debited?

When a partner withdraws cash from the partnership, which account is debited?

Step 1: Understand that a partnership has different accounts for each partner.
Step 2: Know that when a partner takes cash out of the partnership, it is called a withdrawal.
Step 3: Identify the account that tracks the withdrawals made by partners, which is called the Partner's Drawings Account.
Step 4: Remember that when cash is withdrawn, the Partner's Drawings Account is increased.
Step 5: To increase the Partner's Drawings Account, you need to debit it.

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