Define 'drawings' in a partnership.

Drawings in a partnership refer specifically to the amounts that partners withdraw from the business for personal use. This definition is crucial as it signifies how partners can take funds out of the partnership without it being considered income. Instead, these withdrawals reduce the partners’ equity in the partnership since the funds are taken from the profits or capital previously invested into the business.

This concept is an essential part of partnership accounting, as it impacts the financial statements and the partners' capital accounts. When partners make drawings, it’s recorded in the accounting records, ensuring that the partnership’s financial health is accurately represented. This accounting treatment helps maintain clarity regarding the distribution of profits and capital among the partners.

The other options do not accurately describe drawings. The profits distributed among partners are typically represented as allocations of net income rather than personal withdrawals. Funds allocated for business expansion pertain to reinvestment of earnings, which is a different financial transaction altogether. Finally, amounts credited to the partnership accounts relate to contributions or income but do not reflect personal withdrawals, which is the specific nature of drawings.