What is the purpose of the journal entry: "All Partners’ Capital A/c’s (Individually) Dr. To Profit and Loss A/c"?

To transfer accumulated profits to the capital accounts of all partners To transfer profit and loss account credit balance to the capital accounts of all partners To transfer profit and loss account debit balance to the capital accounts of all partners To transfer reserves to the profit and loss account

To transfer profit and loss account debit balance to the capital accounts of all partners

This journal entry is passed to transfer the accumulated losses to all partners in old ratio and this entry is reversed in case of accumulated profits. Profit & loss debit balance is a loss for the firm.