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easyMCQCUET Accountancy 2025 29 May Shift 22026Accountancy
1 mark

At the time of death of a partner, undistributed Losses appearing in the balance sheet of the old firm is transferred to the capital account of:

  1. A
    Old partners in the gaining ratio
  2. B
    Old partners in old profit sharing ratio
  3. C
    Deceased partner only
  4. D
    Continuing partners in the new profit sharing ratio

Solution & Step-by-step Explanation

Accumulated profits, reserves, or accumulated losses existing on the date of death or retirement belong completely to all the old partners since they were earned/incurred during their collaborative runtime. Hence, undistributed losses are debited to all old partners (including the deceased partner) in their old profit sharing ratio.

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At the time of death of a partner, undistributed Losses appearing in the balance sheet of the old firm is transferred to the capital account of:
A
Old partners in the gaining ratio
B
Old partners in old profit sharing ratio
C
Deceased partner only
D
Continuing partners in the new profit sharing ratio

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