Partnership accounting:

Question

Quizplus · Accepted Answer

Partnership accounting uses a capital account for each partner to track their contribution to the business, a withdrawals account for each partner to track their personal draws from the business, allocates net income to each partner according to the partnership agreement to determine their share of the profits, and allocates net loss to each partner according to the partnership agreement to determine their share of the losses. Therefore, all of the choices are correct.

Partnership Accounting