Partnership Accounts

Accountancy

In this question, why they are involving drawings account for paying salary and rent? How this logic works?

Naresh Sundar

CA Inter

★ 2K+

16-Nov-22 11:37

477

Answers (3)

Don't know

Pankaj Dhaman

CA Foundation

★ 4K+

16-Nov-22 13:02

If they don't have profit that year so they distribute it from capital and when we use our business capital for paying salary rent i.e for our personal use we use capital or drawing a/c dr. To salary a/c To rent a/c.

Tamanna Rajput

CA Foundation

★ 95

16-Nov-22 13:54

Basically it is routed throught drawings account instead of capital account. Ultimately all capital accounts, current accounts and drawing accounts are partner's personal account.

CA Suraj Lakhotia

Admin

16-Nov-22 14:50