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WAEC Financial Accounting 1994 Question 39

Question 39

Partnership Accounts

Drawing appear on the

  1. A.debit side of the Profit and Loss Account
  2. B.credit side of the Profit and Loss Account
  3. C.debit side of the Appropriation Account
  4. D.debit side of the Current Account
  5. E.credit side of the Appropriation Account.
Show the answer and explanation

Answer: D (debit side of the Current Account)

Explanation

Partners' drawings reduce what they are owed, so they are debited to their current accounts.