The journal entry to close a partner's withdrawals account involves a debit to the partner's capital account.

Question

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When closing a partner's withdrawals account, the amount of the withdrawals is transferred to the partner's capital account by debiting the capital account and crediting the withdrawals account. The reason for this is that withdrawals represent a reduction in the partner's equity in the business, and this reduction needs to be reflected in the capital account.

The Journal Entry to Close a Partner's Withdrawals Account Involves