Accumulated losses are:
Accumulated losses are:
a) debited to continuing partner’s capital accounts in their new profit sharing ratio.
b) debited to continuing partners’ capital accounts in their old profit-sharing ratio.
c) debited to all the partners’ capital accounts before reconstitution of the firm in their old profit-sharing ratio.
d) credited to all the partners’ capital accounts before reconstitution of the firm in their old profit-sharing ratio.
Anurag Pathak Changed status to publish July 2, 2023
Ans – c)
Explanation:-
Accumulated losses belong to the old partners in their old profit-sharing ratio. as it is part of the past profits.
Anurag Pathak Changed status to publish July 2, 2023
