Question : Reserves, Accumulated (Undistributed) Profits And Losses will be
Option 1: Distributed in remaining partner’s capital account
Option 2: Distributed among all partner’s capital account in old ratio
Option 3: Distributed among all partner’s capital account in New profit sharing ratio
Option 4: Distributed among old partners capital account in gaining ratio
Correct Answer: Distributed among all partner’s capital account in old ratio
Solution : Answer = Distributed among all partner’s capital accounts in the old ratio
Reserves and accumulated profits or losses are typically distributed among all partners' capital accounts in their old profit-sharing ratio. This ensures that each partner receives a share of the accumulated profits or losses in proportion to their existing ownership stake in the partnership before any changes in profit-sharing ratios occur.
Hence, the correct option is 2.
Related Questions
Trending Articles/News
