Question

What would be the journal entry for the transfer of accumulated Losses?

Options

• All Partners' Capital A/c's (Individually) To Profit and Loss A/c

• Reserves A/c Dr To All Partners' Capital A/c's (Individually)

• All Partners' Capital A/c's (Individually) To Profit and Loss Adjustment A/c

• None of these

Answer 1

All Partners' Capital A/c's (Individually) To Profit and Loss A/c.

Explanation:

All Partners' Capital Accounts (Individually) To Profit and Loss A/c For Transfer of Accumulated Losses (Accumulated loss moved to all partners' capital accounts in their old profit-sharing ratio).