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  • Partnership Accounts
  • Accumulated profits should be
Multiple choice

Accumulated profits should be

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

  2. debited to new partner only

  3. debited to old partners in old profit sharing ratio

  4. credited to old partners in the old profit sharing ratio

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The accumulated profits should be credited to old partners in old ratio.

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