October 30, 2016 admin

Partners’ or Proprietor’s Drawing

Liabilities and Net Worth

PARTNERS’ OR PROPRIETOR’S DRAWING NET WORTH ACCOUNT
2840

ACCOUNT EXPLANATION
Amount of cash or fair market value of merchandise withdrawn, other than for salaries, by the partners or proprietor during the current year.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Cash withdrawn by partner for personal use CD
    Partners’ or Proprietor’s Drawing 2840
      Cash in Bank—General 1001
             
  Year-end closing entry to transfer balance in drawing account G
    Partners’ or Proprietor’s Investment 2830
      Partners’ or Proprietor’s Drawing 2840
COMMENTS
  • This account should be used only by dealerships operating as partnerships or proprietorships. Separate drawing accounts should be maintained for each partner.
  • Salaries of partners or proprietor should be charged to Account 8900, Dealer Salary.