K. Canopy, the proprietor of Canopy Services, withdrew $6,200 from the business during the current year. The entry to close the withdrawals account at the end of the year is: __ Debit K Canopy, Withdrawals $6,200; credit Cash, $6,200 __ Debit K. Canopy, Capital $6,200; credit K. Canopy, Withdrawals $6,200 __ Debit K. Canopy, Withdrawals $6,200; credit K. Canopy, Capital $6,200 __ Debit K. Canopy, Capital $6,200, credit Salary Expense $6,200 __ Debit Income Summary $6,200; credit K. Canopy, Capital $6,200
K. Canopy, the proprietor of Canopy Services, withdrew $6,200 from the business during the current year. The entry to close the withdrawals account at the end of the year is:
__ Debit K Canopy, Withdrawals $6,200; credit Cash, $6,200
__ Debit K. Canopy, Capital $6,200; credit K. Canopy, Withdrawals $6,200
__ Debit K. Canopy, Withdrawals $6,200; credit K. Canopy, Capital $6,200
__ Debit K. Canopy, Capital $6,200, credit Salary Expense $6,200
__ Debit Income Summary $6,200; credit K. Canopy, Capital $6,200
In a partnership firm, partners introduce capital, executes the business, generates profits & withdraw the same. These are very routine activities of a partnership firm.
So initially when K. Canopy, makes the withdrawal, journal entry will be:
Debit K Canopy, Withdrawals $6,200;
Credit Cash, $6,200
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