What is meant by accumulated profits and accumulated losses?
What is meant by accumulated profits and accumulated losses?
Anurag Pathak Changed status to publish July 18, 2023
Accumulated profits means profits which have accumulated over the years either because they have not been distributed among partners. The example is Profit and Loss Account (Credit balance)
The losses which have not yet been written off or losses which have accumulated over the years and are yet to be distributed among partners, are accumulated losses, e.g., the profit and loss account (debit balance)
Anurag Pathak Changed status to publish July 18, 2023