If a partner withdraws from a partnership and receives more cash than the amount recorded in...
If a partner withdraws from a partnership and receives more cash than the amount recorded in the appropriate capital account, what accounting does the business make of the excess payment?
Homework Answers
If a partner withdraws from a partnership and receives more cash than the amount recorded in the appropriate capital account
than such excess amount withdrawn will be recorded as debit to partner's capital account.
Journal entry will be as follows:-
Partners capital Account Dr. $XXX
To cash Cr. $XXX
(Being cash withdrawn by Mr partner)
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