Aries and Eros start a partnership with capital contributions of $37,000 and $63,000,respectively.Over the course of the year,Aries withdraws $4800 from the business in order to meet his personal expenses.Which of the following is the correct journal entry to close the relevant Withdrawals account at the end of the year?
C)No entry

Question

Quizplus · Accepted Answer

Withdrawals will decrease the Capital account.To close the Withdrawals account,the Withdrawals account is credited and the Capital account is debited.

Aries and Eros Start a Partnership with Capital Contributions of $37,000