Multiple choice

The debit balance of profit and loss account should be

  1. debited to old and new partners in the profit sharing ratio

  2. debited to new partner only

  3. credited to old partners in old profit sharing ratio

  4. debited to old partners in the old profit sharing ratio
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The P and L account should be debited to old partners in old ratio. 

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