What if we withdraw excess

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1359 Points Posted on 13 November 2021
What if we withdraw excess of money from capitals account ( in both fixed and fluctuating capital method)
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On 13 November 2021 at 08:07 Report
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Withdrawing excess money from your business's capital account, whether using fixed or fluctuating methods, reduces company assets. This action increases liabilities, as the owner becomes personally liable to repay the excess cash to the business. It's crucial to settle these amounts promptly to avoid further complications.

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Master in Accounts & high court Advocate
9620 Points Posted on 13 November 2021

When a business owner withdraws cash from a company account, the value of company assets decreases because some capital reserves have been transferred from business to personal use. liabilities will increase.

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On 13 November 2021 at 10:41
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Team Lead
7558 Points Posted on 13 November 2021
Partners proprietar is liable to pay the business the excess cash withdrawn and needs to settle it urgently.
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On 13 November 2021 at 12:57
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Chartered Accountant
24588 Points Posted on 13 November 2021
It should be settled
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On 13 November 2021 at 17:54

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