Partnership Withdraws – Partners Draws Journal Entry

Partners withdraws will record the journal entry for the partners in a partnership withdrawing cash for personal use. We will enter the partners draws journal entry in a general journal for three partners and then post the draws journal entry to a worksheet so we can see the effect on the accounting equations, accounts, and trial balance. We will debit withdraws account for each partner and credit cash. The draws accounting is a equity account that goes up with a debit but does not effect net income The draws account can be thought of as a contra equity account because most equity accounts have a credit balance and draws has a debit balance.
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