**Treatment of Withdrawal of Goods in Profit/Loss Appropriation Account and Partners' Capital Accounts**

When a partner withdraws goods from the partnership for personal use, it is necessary to account for this transaction in the books of accounts. The treatment of withdrawal of goods can be recorded in the Profit/Loss Appropriation Account and the partners' capital accounts. Here is how the entry can be passed:

**1. Treatment in Profit/Loss Appropriation Account:**

The Profit/Loss Appropriation Account is used to distribute the profits or losses of the partnership among the partners. When a partner withdraws goods, it affects the profits of the partnership. Therefore, the withdrawal of goods is recorded as an appropriation item in the Profit/Loss Appropriation Account. The entry for this transaction can be as follows:

**Profit/Loss Appropriation Account**

| Particulars | Amount |
| --- | --- |
| Partner's Withdrawal (Goods) | (Debit) |
| To Partner's Capital Account | (Credit) |

The amount of the partner's withdrawal (goods) will be debited to the Profit/Loss Appropriation Account, reducing the total profits available for distribution among the partners. Simultaneously, the same amount will be credited to the respective partner's capital account.

**2. Treatment in Partners' Capital Accounts:**

The partners' capital accounts are maintained to record their respective capital contributions, share of profits, and withdrawals. When a partner withdraws goods, it affects their capital account. The entry for this transaction can be as follows:

**Partner's Capital Account**

| Particulars | Amount |
| --- | --- |
| Partner's Withdrawal (Goods) | (Debit) |
| To Profit/Loss Appropriation Account | (Credit) |

The amount of the partner's withdrawal (goods) will be debited to the respective partner's capital account, reducing their capital balance. Simultaneously, the same amount will be credited to the Profit/Loss Appropriation Account, reflecting the reduction in profits available for distribution.

**Conclusion:**

In conclusion, the withdrawal of goods by a partner should be recorded in the Profit/Loss Appropriation Account as an appropriation item, reducing the total profits available for distribution. Simultaneously, the same amount should be debited to the respective partner's capital account, reducing their capital balance. By following these accounting entries, the impact of the withdrawal of goods on the partnership's profits and individual partner's capital can be properly accounted for.