It is not possible for the withdrawals account of a partner to be nil before closing entries.

Question

Quizplus · Accepted Answer

The withdrawals account represents the amount of money that a partner has taken out of the business for personal use during the accounting period. It is possible for this account to have a balance of zero before the closing entries are made, if the partner did not make any withdrawals during the period. However, if the partner did make withdrawals, there would be a balance in the account, which would need to be closed out by transferring the balance to the partner's capital account. Therefore, it is not true that the withdrawals account of a partner must have a balance of zero before the closing entries are made.

It Is Not Possible for the Withdrawals Account of a Partner