On the retirement of Hari from the firm of Hari, Ram and Sharma, the Balance Sheet showed a debit balance of ₹ 12,000 in the Profit & Loss Account. For calculating the amount payable to Hari, this balance will be transferred
On the retirement of Hari from the firm of Hari, Ram and Sharma, the Balance Sheet showed a debit balance of ₹ 12,000 in the Profit & Loss Account. For calculating the amount payable to Hari, this balance will be transferred
a) to the credit of the capital accounts of Hari, Ram and Sharma equally.
b) to the debit of the capital accounts of Hari, Ram and Sharma equally.
c) to the debit of the capital accounts of Ram and Sharma equally
d) to the credit of the capital accounts of Ram and Sharma equally
Anurag Pathak Changed status to publish July 2, 2023
Ans – b)
Explanation:-
All accumulated losses are debited to all the partners in their old profit sharing ratio as is the part of the past profits.
Anurag Pathak Changed status to publish July 2, 2023
