Maharashtra State BoardHSC Commerce 12th Board Exam
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Answer in One Sentence : How is a Debit Balance of Profit and Loss Account Dealt with on Death of a Partner? - Book Keeping and Accountancy

One Line Answer

Answer in one Sentence :
How is a debit balance of profit and loss account dealt with on death of a partner?

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Solution

Debit balance of Profit & Loss Account represents accumulated losses. So, it is transferred to the debit side of All Partners’ Capital Accounts in their old profit sharing ratio.

Concept: Meaning of Retirement Or Death of a Partner
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 5 Reconstitution of Partnership (Death of Partner)
Exercise | Q 8 | Page 140
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