In accounting for a partnership, capital and drawings accounts are:
A) separate for all shareholders.
B) separate for each partner.
C) part of retained earnings.
D) combined for all partners.

Question

Quizplus · Accepted Answer

Capital and drawings accounts are separate for each partner in a partnership. Each partner has their own capital account that tracks their contributions to the partnership and their share of the profits or losses. Drawings accounts track the amount of money that partners withdraw for personal use and are also separate for each partner.

In Accounting for a Partnership, Capital and Drawings Accounts Are