Where fixed capitals are maintained, partners' drawings are transferred to the
A. credit of capital account B. debit of capital accounts C. credit of partners's current accounts D. debit of partners' currents account
Correct Answer: B
Explanation
Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital . On the other hand, expenses and withdrawals decrease capital, hence they normally have debit balances. Therefore partners drawings would have a debit balance in the capital account
