To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner's capital account.

Question

Quizplus · Accepted Answer

Owner withdrawal transactions are recorded in a separate account called the "Drawing Account" or "Owner's Draw Account," not directly in the Owner's Capital Account. This helps in clearly distinguishing between the owner's investments and withdrawals from the business.

To Summarize Withdrawal Information Separately from the Other Records, Owner