The separate entity assumption requires personal expenses paid by the business be charged to a partner's drawing account.

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The separate entity assumption in accounting requires personal expenses paid by the business to be charged to a partner's drawing account, as it separates the personal finances of the partners from the business finances. This ensures that the business records accurately reflect only the transactions related to the business, and not the personal expenses of the partners.

The Separate Entity Assumption Requires Personal Expenses Paid by the Business