Another
possible
source
of
increase
or
decrease
in
partners’ equity
arises
from
changes
in
partnership
personnel,
as
discussed
on
pages 19-30.
The original investment of assets by partners is recorded by credits to the capital accounts; drawings by partners in anticipation of profits or drawings which are considered salary are recorded by debits to the drawing accounts. However, a large withdrawal which is viewed as a permanent reduction in the ownership equity of a partner should be debited directly to the partner’s capital account.