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easyMCQCUET Accountancy 2025 30 May Shift 12026Accountancy
1 mark

If there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm. It should be transferred to:

  1. A
    The old partners' capital accounts.
  2. B
    The new partners' capital accounts.
  3. C
    All partners' capital accounts.
  4. D
    Not any partners' capital accounts.

Solution & Step-by-step Explanation

At the time of reconstitution or general adjustment in a partnership, any accumulated losses (debit balance of Profit & Loss Account) existing in the balance sheet must be written off by transferring them to the old partners' capital accounts in their old profit-sharing ratio.

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If there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm. It should be transferred to:
A
The old partners' capital accounts.
B
The new partners' capital accounts.
C
All partners' capital accounts.
D
Not any partners' capital accounts.

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PartnershipAccountingAccumulated Losses

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