Aries and Eros Start a Partnership Firm with Capital Contributions

question 44

Multiple Choice

Aries and Eros start a partnership firm with capital contributions of $40,000 and $60,000, respectively. In course of the year, Aries withdraws $5,000 from the business in order to meet his personal expenses. Which of the following is the correct journal entry to close the relevant Withdrawals account at the end of the year?

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Definitions:

Top-down Communication

A method of information flow where decisions and information are passed from higher levels of an organization to lower levels.

Egalitarian Climate

A work environment where all employees are given equal respect and opportunities, regardless of their status or job role.

Departments Expand

The process of a company or organization increasing the size, scope, or number of its divisions.

Specialized

Pertains to a specific area of expertise or focus within a larger field.