WITHDRAWAL OF PARTNERS CAPITAL

If the partner withdraws all the money from his capital account of the firm, what will be the effect on the partner's personal accounts? How to show the adjustment?
Replies (3)
Quick Summary
This discussion explores the accounting implications when a partner withdraws their entire capital from a firm, specifically under the fluctuating capital method. It clarifies how such a withdrawal affects the partner's personal accounts and details the necessary adjustment entries to accurately reflect this transaction within the firm's books.

What type of capital method Firm using
1) Fixed Capital method
2) Fluctuating Capital method .
Share the query explicitly plz
Fluctuating capital

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register